I received bitcoin (worth $5700) from someone. I cashed out. Is this taxable in my tax return?

Forum|Forum|7 years ago
June 5, 2019
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Employee

It is a taxable event, yes. Receiving the bitcoin itself was not taxable, but cryptocurrency is considered to be investment property, similar to stocks, but not exactly the same. (The IRS does not define crypto as a security). However, your bitcoin had one value when you received it, and another when you cashed it in. The difference between the two values is a taxable event (a taxable event can be a loss as well) that must be reported.

To do so, please see this FAQ with the video attached that can help you to understand how to report this: https://ttlc.intuit.com/replies/6468764

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