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Forbes: Cryptocurrency Purchases Made In Fiat Currencies Are Not Reportable To The IRS
Summary: Cryptocurrency purchases made in fiat currencies are not subject to any type of IRS tax reporting according to the IRS FAQs on cryptocurrency (Q5) updated as of March 2, 2021, as reported by Forbes. Prior to this updated guidance from the IRS, taxpayers were confused whether purchasing cryptocurrency in USD would require them to check “yes” ...
Cryptocurrency purchases made in fiat currencies are not subject to any type of IRS tax reporting according to the IRS FAQs on cryptocurrency (Q5) updated as of March 2, 2021, as reported by Forbes.
Prior to this updated guidance from the IRS, taxpayers were confused whether purchasing cryptocurrency in USD would require them to check “yes” on the virtual currency question.
It should be highlighted that FAQ-Q5 only applies to cryptocurrency purchased in fiat. If you purchase a cryptocurrency using another cryptocurrency, you would have to check “yes” on the Form 1040 question.
By Amy Liu
Tags: Cryptocurrency,fiat currencies,IRS
Link: Forbes: Cryptocurrency Purchases Made In Fiat Currencies Are Not Reportable To The IRS [Copy]
