Christian Posted January 27, 2022 Report Posted January 27, 2022 In reading the rules for checking this box I am wondering if simply buying Bitcoin or whatever requires it be checked. A client purchased two Bitcoins but still holds them in his account. It does say received so I assume that qualifies to check the box. Quote
Catherine Posted January 27, 2022 Report Posted January 27, 2022 If there are no sales/redemptions, then there is no taxable item to report. 1 Quote
Sara EA Posted January 27, 2022 Report Posted January 27, 2022 No, don't check the box if all they did was buy. It's confusing because the wording is "did you receive...." Well, if you bought of course you received crypto. It really means is "receive for services or goods." 1 Quote
Christian Posted January 27, 2022 Author Report Posted January 27, 2022 Y'all have confirmed what I was thinking. Namely you need a transaction to use the box not just a purchase. Quote
Lion EA Posted January 27, 2022 Report Posted January 27, 2022 If you purchased crypto with fiat currency, do NOT check the box. If you acquired it in any other way, DO check the box. Quote
kathyc2 Posted January 27, 2022 Report Posted January 27, 2022 I included the IRS definition of virtual currency straight from the 1040 instructions with my letter. That puts onus on client that they need to tell me to check box or not. https://www.irs.gov/instructions/i1040gi#en_US_2021_publink100061442 4 Quote
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