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Forum|Forum|4 years ago
March 18, 2022
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TurboTax Premier Online

If you contributed any money to the IRA or sold any assets in it or received any currency, then you should answer "yes" to the question regarding receiving, selling or disposing of cryptocurrency. I agree with you that you don't need to report any income from the investment as long as you didn't take a distribution from the IRA. So, you wouldn't enter anything on your tax return.

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G

GeorgeM777

To follow-up on the comments from @ThomasM125, it would appear that the IRS' wording of the cryptocurrency question is broader in that it could encompass transactions in taxable as well as non-taxable accounts. In this regard, it asks generally about disposing of any financial interest in cryptocurrency. Below is the relevant question and response from the IRS website that addresses the question on Form 1040.

Q5(a). The 2021 Form 1040 asks whether at any time during 2021, I received, sold, exchanged, or otherwise disposed of any financial interest in any virtual currency. During 2021, I purchased virtual currency with real currency and had no other virtual currency transactions during the year. How do I answer the question on the Form 1040? (added March 10, 2022)

A5(a). If your only transactions involving virtual currency during 2021 were purchases of virtual currency with real currency, you are not required to answer “yes” to the Form 1040 question, and should, instead, check the “no” box.

FAQs on Virtual Currency

@4893530

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