13 Sydney bought cryptocurrency and then converted some to dollars, sold some her Bitcoin for Ethereum, and used some to buy a plane ticket. Which actions involving cryptocurrency does Sydney need to report to the IRS for tax purposes? Only converting the cryptocurrency to dollars All actions except the original purchase of cryptocurrency Only selling some and buying the plane ticket All of the transactions where she made money

Question

13 Sydney bought cryptocurrency and then converted some to dollars, sold some her Bitcoin for Ethereum, and used some to buy a plane ticket. Which actions involving cryptocurrency does Sydney need to report to the IRS for tax purposes? Only converting the cryptocurrency to dollars All actions except the original purchase of cryptocurrency Only selling some and buying the plane ticket All of the transactions where she made money

Answer 1

B. All actions except the original purchase of cryptocurrency

Answer 2

The IRS requires reporting of all cryptocurrency transactions that result in a taxable event, such as converting to dollars, selling for another cryptocurrency, and using it to purchase goods or services. The original purchase is not a taxable event.

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