Crypto

Hello NandoLkz,

Thanks for joining us today!

If you sell or exchange crypto, it is a taxable event.  It can be taxed as Short-term or Long-term depending on how long you held on to the crypto before doing the exchange.  Holding for one year or less will be treated as short-term, holding for more than one year is treated as long-term.

Additional resources:

https://turbotax.intuit.com/tax-tips/investments-and-taxes/4-crypto-tax-myths-you-need-to-know/L4cejhy2v

https://ttlc.intuit.com/turbotax-support/en-us/help-article/cryptocurrency/cryptocurrency/L4tWUeZUU_US_en_US

https://turbotax.intuit.com/tax-tips/investments-and-taxes/your-cryptocurrency-tax-guide/L4k3xiFjB

Hope it helps!

Hello Nandolkz, I hope your day is going well. 

Assuming "exchange" crypto means trading one crypto (A) for a different crypto (B), you would have a taxable event. In this event, you have sold crypto A, and purchased another crypto, B.

The value of your new crypto is considered proceeds received for the sale.

EX. If you paid $600 for 1 BTC, then exchange it for 2 ETH worth $500. Report the $500 as proceeds received for selling the 1 BTC along with $600 cost basis to reduce the gain or create a capital loss for this sale. 

The cost basis in your new crypto, B, is the proceeds that was received for Crypto A. $500