Question

Will I need to report a $10 cryptocurrency exchange of one type of currency to another on my taxes?

Forum|Forum|4 years ago
March 1, 2022
1 reply
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I received free cryptocurrencies on Coinbase. I have not bought any more from them or sold what I have. I did however exchange just $10 of one currency to another currency as a test. Is this a taxable action that I must report?

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H

HelenC12

Yes, you have to report the exchange of your $10 cryptocurrency. Cryptocurrency sold, exchanged, spent or converted, is treated as sale of property:

Like property sales or the sale of stock, any gain or loss from the sale or trade of cryptocurrency is reported as a capital gain or loss. See How do I report Bitcoin or other cryptocurrency as a capital gain?
If you buy and sell it within 12 months, it’s treated as a short-term capital gain.
If you hold it for over 12 months, it’s taxed at the lower, long-term, capital gain rates.

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