The IRS really wants to know about your bitcoins and other crypto.
It starts at the top of the first page of your Form 1040, where you find the following question right after the spaces for your name and address:
At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?
All taxpayers must answer this question under penalty of perjury, even those who have never heard of Bitcoin and don’t know what cryptocurrency is. You can’t leave the field blank.
Unfortunately, this is something of a trick question. It is so broadly worded, you’d think any transaction involving digital currency requires a “yes” answer. But this is not the case.
This article will clue you in on the following:
When must you answer “yes” to this question?
What should you do if you answer the ... Log in to view full article.