Tax Blog

Cryptocurrency transactions on your 2020 tax return

Yes, you must report your cryptocurrency transactions on your 2020 tax return. The IRS seems

to be more concerned with income and capital gain or loss that you may have acquired and less

of how it came about and was disposed of. They have deemed bitcoin as property and not

currency making it a capital asset and therefore taxed like stocks. The flip side to this is that

while your account for capital gains, you can also deduct capital losses. Since owning a digital

currency like Bitcoin still has some grey areas, you should keep a careful record of all your

transactions for when tax time comes around as it is your job to report to the IRS. The IRS has

made sure that nobody will forget to report this by updating the 1040 tax return form to include a

section asking payers whether they have received, sold, sent, or exchanged any cryptocurrency.

If you owned any kind of cryptocurrency regardless of making transactions or not you are

required to answer “yes” to this question. The professionals at The Center are more than knowledgeable, for more information, please contact us at (618) 997-3436

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