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That Bitcoin Question on the 1040

Level 13

Just in case you have been worrying about it.  Not that you can rely on IRS FAQ's, of course.

Q5. The 2020 Form 1040 asks whether at any time during 2020, I received, sold, sent, exchanged, or otherwise acquired any financial interest in any virtual currency. During 2020, I purchased virtual currency with real currency and had no other virtual currency transactions during the year. Must I answer yes to the Form 1040 question? (3/2/2021)


A5.  No. 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.



2 Replies 2
Level 12
Level 12

ummmmmmmm.....wait, what????? 

Level 15

Plain English huh?