๐•๐ˆ๐‘๐“๐”๐€๐‹ ๐‚๐”๐‘๐‘๐„๐๐‚๐˜ ๐‹๐ˆ๐’๐“ ๐‘๐„๐•๐ˆ๐’๐„๐ƒ ๐ข๐ง ๐…๐Ž๐‘๐Œ ๐Ÿ๐ŸŽ๐Ÿ’๐ŸŽ ๐ˆ๐๐’๐“๐‘๐”๐‚๐“๐ˆ๐Ž๐๐’ (๐Ÿ/๐Ÿ๐Ÿ•/๐Ÿ๐ŸŽ๐Ÿ๐Ÿ)

The final instructions list the following as virtual currency transactions that trigger a โ€œYESโ€ response on a Form 1040 to the virtual currency question:

โ€ข The receipt or transfer of virtual currency for free (without providing any consideration), including from an airdrop or hard fork;
โ€ข An exchange of virtual currency for goods or services;
โ€ข A sale of virtual currency;
โ€ข An exchange of virtual currency for other property, including for another virtual currency; and
โ€ข A disposition of a financial interest in virtual currency.

The above list isnโ€™t exhaustive and other transactions may require a โ€œYESโ€ response on a Form 1040.

For more info, see page 16 of Forms 1040 & 1040-SR instructions at https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

If you need help, contact us at https://tjcarroll-law.com/contact/

๐“๐ก๐จ๐ฆ๐š๐ฌ ๐‰๐š๐ฆ๐ž๐ฌ ๐‚๐š๐ซ๐ซ๐จ๐ฅ๐ฅ, ๐.๐‚. ๐ข๐ฌ ๐š ๐ฅ๐š๐ฐ ๐Ÿ๐ข๐ซ๐ฆ ๐Ÿ๐จ๐œ๐ฎ๐ฌ๐ข๐ง๐  ๐จ๐ง ๐Ÿ๐ž๐๐ž๐ซ๐š๐ฅ ๐š๐ง๐ ๐ฌ๐ญ๐š๐ญ๐ž ๐ญ๐š๐ฑ๐ž๐ฌ ๐ญ๐ก๐š๐ญ ๐ฉ๐ซ๐จ๐ฏ๐ข๐๐ž๐ฌ ๐ข๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐š๐ฅ๐ฌ ๐š๐ง๐ ๐›๐ฎ๐ฌ๐ข๐ง๐ž๐ฌ๐ฌ๐ž๐ฌ ๐ฐ๐ข๐ญ๐ก ๐ญ๐š๐ฑ ๐ก๐ž๐ฅ๐ฉ ๐š๐ง๐ ๐ฌ๐จ๐ฅ๐ฎ๐ญ๐ข๐จ๐ง๐ฌ ๐Ÿ๐จ๐ซ ๐ญ๐จ๐๐š๐ฒ ๐š๐ง๐ ๐ญ๐จ๐ฆ๐จ๐ซ๐ซ๐จ๐ฐ.

๐Ž๐ฏ๐ž๐ซ ๐Ÿ‘๐Ÿ“ ๐˜๐ž๐š๐ซ๐ฌ ๐จ๐Ÿ ๐„๐ฑ๐ฉ๐ž๐ซ๐ข๐ž๐ง๐œ๐ž ๐ข๐ง ๐ˆ๐‘๐’, ๐๐˜ & ๐๐‰ ๐“๐š๐ฑ ๐€๐ฎ๐๐ข๐ญ๐ฌ, ๐€๐ฉ๐ฉ๐ž๐š๐ฅ๐ฌ & ๐“๐š๐ฑ ๐๐ฅ๐š๐ง๐ง๐ข๐ง๐ .

๐–๐–๐–.๐“๐‰๐‚๐€๐‘๐‘๐Ž๐‹๐‹-๐‹๐€๐–.๐‚๐Ž๐Œ