question about virtual currency
The following question appeared for the first time on the 2019 tax return: “At any time during the tax year, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency.” Taxpayers must indicate whether or not they engaged in virtual currency transactions by responding yes or no. The tax return will not be accepted for e-filing or filing, period, if an answer to this question is omitted.
Answers to Question
Answer “Yes” to the question on the tax return if at any time during the tax year, you received, sold, sent, exchanged, or otherwise acquired any financial interest in any virtual currency, including cryptocurrency.
Answer "No" if you held virtual currency in a digital wallet or account, or transferred virtual currency between digital wallets or accounts owned or controlled by you.
The IRS defines virtual currency as “a digital representation of value, other than a representation of the U.S. dollar or a foreign currency (“real currency”), that functions as a unit of account, a store of value, and a medium of exchange.”
Cryptocurrency is a type of virtual currency. Cryptocurrency uses cryptography to record secure transactions digitally on a distributed ledger such as blockchain. Bitcoin, Litecoin, and Ethereum are popular types of cryptocurrency.
Joining the conversation today is John Wingate, a crypto expert who is freeing the world with a new economic system. John is CEO at BankSocial™. He explains how the use case for crypto has expanded and evolved to an eco-system since Bitcoin first launched in 2009.
BankSocial™ is the first and only Decentralized Banking and Finance Platform, built 100% from the ground up on the Blockchain, that pays the banks members for holding tokens to fund loans. We utilize our proprietary BLOCKSCORE™ social credit scoring system and social consensus lending pool, built with the security of smart contracts, to provide Mortgage, Auto and Micro Lending to the world. BankSocial is by the people, for the people.
Website: https://www.banksocial.io
Email: john@banksocial.io
LinkedIn: https://www.linkedin.com/company/banksocial
FB: https://bit.ly/3ffSL4K
Twitter: https://twitter.com/banksocialio
YouTube: https://youtube.com/BankSocial
IG: https://www.instagram.com/banksocial.io
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