Federal Tax, Tax

Virtual Currency Question

It’s a simple “yes” or “no” question, but you must answer it on your Form 1040 or Form 1040-SR: At any time during 2021, did you receive, sell, exchange or otherwise dispose of any financial interest in any virtual currency? According to the IRS, some examples of a transaction involving virtual currency are the receipt of virtual currency as payment for goods or services; the receipt or transfer of virtual currency for free that doesn’t qualify as a bona fide gift; a trade of virtual currency for another virtual currency; and a sale of virtual currency. We can help determine how you should answer this question. © 2022