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Reporting Virtual Currency Transactions

March 7, 2022

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. Our tax advisors can help determine how you should answer this question, so reach out to us today.

Interested in virtual currency? You’ll want to be careful of certain fraud scams that are a significant risk when dealing with crypto currency. Our forensic accounting team dives into this topic in a recent article about what to look for. Click here to read the article.

Published March 7, 2022

 


 

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