Most people who've bought and sold cryptocurrency (like Bitcoin, Litecoin, Ripple, Ethereum and Monero, etc.) are trading it as an investment.
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.