How do I report the sale of cryptocurrency on my taxes?

by TurboTax• Updated 4 days ago

If you trade digital currency (such as Bitcoin, Litecoin, Ripple, Ethereum, or Monero) 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 to enter your capital gains or losses.

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Select Find from the TurboTax menu.
In the Find window, enter capital gains.
Select Capital Gains and Capital Gains Deduction Profile from the results, then select Go.
On the Your Capital Gains Profile screen, check Sold stocks, crypto, bonds... and then select Continue.
On the Capital Gains screen, select Virtual currency transactions next to Type of capital property disposed of.
Enter the rest of the information and select Done.

If you sold less than one unit of the currency, leave the # of units for shares or face value field blank. It isn't required.

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Select Find from the TurboTax menu.
In the Find window, enter capital gains.
Select Capital gains / losses from the results, then select Go.
On the Your capital gains profile screen, select Sold stocks, bonds, cryptocurrency/token transactions, then select Continue.
On the Stock Sales and Other Property Profile for 2024 screen, select the Sold bonds, debentures, promissory notes, and virtual currency option, then select Continue.
You will be taken to the Bonds and Other Property form, where you can enter your amounts, then select Continue to complete the process.

If you sold less than one unit of the currency, leave the # of Shares field blank. It isn't required.