VC Q?

Forum|Forum|5 years ago
April 20, 2021
2 replies
16 views

Saw this from IRS email:

Correctly answer the virtual currency question. The 2020 Form 1040 asks whether at any time during 2020, a person received, sold,

sent, exchanged or otherwise acquired any financial interest in any virtual currency. If a taxpayer’s only transactions involving virtual currency

during 2020 were purchases of virtual currency, they are not required to answer ‘yes’ to the question.

I always thought, when you say acquired that means PURCHASES? Or am I missing something here?

ProSeries Professional

This topic has been closed for replies.

dkh

Level 15

Hold on.... IRS WILL NOT EMAIL YOU! I wouldn't respond or even open for that matter.

Just-Lisa-Now-

Intuit Community Champion

IRS does email newsletters and alerts though.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Just-Lisa-Now-

Intuit Community Champion

Ive seen this discussed...acquire would mean purchase to me as well, but I guess not in this definition. At any rate, if my clients are involved in crypto at all, I mark yes....let IRS sort it out.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

U

Username is two words

Level 5

A related question: if a taxpayer buys or sells shares in a trust - GBTC specifically, Greyscale Bitcoin Trust, an investment vehicle that owns Bitcoin - is that considered a virtual currency transaction for the purposes of that question?

GBTC and other similar holdings can be purchased through traditional brokerages like Schwab. Schwab said they 'believe' the ownership of GBTC is treated as an ETF. Not that GBTC is an ETF but it functions like one.

qbteachmt

Level 15

I googled it for you:

https://www.reddit.com/r/tax/comments/kv92o5/how_are_grayscale_trust_like_gbtc_taxed_are_they/

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