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Title: Your opinion on IRS providing more updates regarding Crypto assets Post by: ConnerDalfino on March 04, 2021, 07:08:28 AM Quote According to an update to the IRS’s FAQ section on cryptocurrency, crypto investors who only purchased digital assets using fiat and did not sell throughout 2020, do not need to report their transactions under the “virtual currency” question. Greater Clarity However, question five of the IRS’ updated cryptocurrency FAQ information asks whether an individual who “purchased virtual currency with real currency and had no other virtual transactions during the year” must report said activities in Form 1040. The answer now states: Quote “If your only transactions involving virtual currency during 2020 were purchases of virtual currency with real currency, you are not required to answer yes to the Form 1040 question.” So hodlers if you buy and hodl you do not have to claim your cryptos and do not have to report it or pay capital gains. One more reason, a big reason to stop trading and buy and hold. And understand there are ways to profit from your investment without ever selling it. Not to mention if you trade BTC for dollars (or yuan,pesos,euros whatever fiat) you are exchanging something that is increasing in value for that which is losing value through currency inflation. Title: Re: Your opinion on IRS providing more updates regarding Crypto assets Post by: odolvlobo on March 04, 2021, 07:54:40 AM I don't think your post is clear.
Basically, the guidance says that if you bought, sold, traded, or exchanged coins for anything in 2020, you must answer YES. If you did nothing or only moved coins, then you answer NO. Additionally, if you sold, traded, or exchanged coins for anything in 2020, you must report capital gains on the coins you unloaded. You do not report capital gains if you only obtained coins or moved them. |