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February 14, 2020
Question

I bought bitcoin and sold it instantly. Do I include it in my taxes?

  • February 14, 2020
  • 2 replies
  • 0 views
I bought and sold it through cash app. It was only probably $1 worth but I didn’t understand it so I sold it. I however received a form for it. Do I include it?

2 replies

February 14, 2020

if you got a form, report it.   form 1099-B 

February 14, 2020

Just as user HACKITOFF stated, you do need to report this in your return since you received a tax form.  

 

Buying and selling cryptocurrency is similar to buying and selling stocks.  The transactions are ultimately reported on Schedule D for capital gains or losses.  

 

Take a look at the following TurboTax article to learn more:  How do I report Bitcoin or other cryptocurrency as a capital gain?

 

Within the article it gives you steps to take to get started with entering your information.  Since you have only one transaction to enter, you can type it in yourself and make things easier instead of trying to upload a document.  

 

Here are the basic steps to get started:

  1. Open or continue your return.
  2. Select Federal from the left menu, and Wages & Income from the menu near the top.
  3. Scroll down and select Show more next to Investment Income.
  4. Select Start or Revisit next to Cryptocurrency.
  5. Follow the instructions and we'll calculate the gain or loss from the sale.

 

@johnnalawrence

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