If you are trading digital currency as an investment, any gains (or losses) are reported on your tax return as a capital gain (or loss), just like stocks or gold.
Here’s how you enter your capital gains (or losses):
- In the upper-right corner of your screen, select Find.
- In the Find window, type capital Gains and select Go.
- On the Your Capital Gains Profile step, check the option Sold stocks and select Continue.
- On the Capital Gains step, enter your amounts and select Continue.
Note: If like many cryptocurrency investors, you sold less than 1 unit of the currency, leave the ‘# of units for shares or face value’ field blank. It’s not required.