Yes, IRS guidance indicates that you need to report such items on your tax return. Additionally, the first question on the 2019 Form 1040 (your tax return) asks " At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?"

You can read more about the question here and view the IRS's website here

Generally, when a crypto asset is acquired and subsequently disposed of (through sale, payment of goods/services, fee payments, and other such events) it triggers a taxable event.

You should consult your own professional advisors before making any tax, legal or accounting decisions.

NOTE: Lukka does not provide tax advice. The statements above are general in nature and do not address how the application of the tax rules can vary based on a taxpayer’s actual facts. Please consult a tax professional on how the tax rules apply to your specific facts.

Did this answer your question?