Most people who have bought and sold cryptocurrency (such as Bitcoin, Litecoin, Ripple, Ethereum, or Monero) are trading it as an investment.
If you're 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):
- Select Find (or the magnifying glass icon).
- In the Find window, type capital gains and select Go.
- On the Your Capital Gains Profile screen, check the option Sold stocks and then select Continue.
- On the Capital Gains screen, 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.