Share this article
BTC
$77,949.10
-
6.86%ETH
$1,554.20
-
14.79%USDT
$0.9995
-
0.04%XRP
$1.8439
-
14.39%BNB
$553.18
-
7.19%USDC
$1.0001
-
0.02%SOL
$103.75
-
13.97%TRX
$0.2266
-
4.12%DOGE
$0.1432
-
15.37%ADA
$0.5620
-
13.97%LEO
$8.9245
-
2.50%LINK
$11.03
-
14.59%TON
$2.9252
-
10.73%XLM
$0.2164
-
14.98%AVAX
$15.85
-
9.54%SHIB
$0.0₄1113
-
10.03%SUI
$1.8729
-
15.56%OM
$5.9747
-
4.64%HBAR
$0.1368
-
15.68%BCH
$269.15
-
10.08%Sign Up
- Back to menuPrices
- Back to menuResearch
- Back to menu
- Back to menu
- Back to menu
- Back to menuResearch
IRS Tweaks Crypto Question Language on 2021 1040 Draft Form
The revised question asking taxpayers about crypto assets is much simpler and clearer.
The U.S. Internal Revenue Service may finally be close to more clearly stating how crypto assets should be taxed.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
In a draft form of the 1040 form for 2021 released on Wednesday, the tax agency has proposed asking the question "At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?”
That compares to the lengthier 2020 question that asked “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?"
The 2020 version of the question generated considerable confusion about whether simply acquiring cryptocurrency or moving it from one wallet to another would incur taxes.
In its guidance last year, the IRS made it clearer that cryptocurrency transactions would only be taxable if they were sold, exchanged for goods or services or exchanged for property including other crypto assets.
The new language, if adopted, would make it much clearer which type of transactions the IRS has in mind.
Nelson Wang
Nelson edits features and opinion stories and was previously CoinDesk’s U.S. News Editor for the East Coast. He has also been an editor at Unchained and DL News, and prior to working at CoinDesk, he was the technology stocks editor and consumer stocks editor at TheStreet. He has also held editing positions at Yahoo.com and Condé Nast Portfolio’s website, and was the content director for aMedia, an Asian American media company. Nelson grew up on Long Island, New York and went to Harvard College, earning a degree in Social Studies. He holds BTC, ETH and SOL above CoinDesk’s disclosure threshold of $1,000.
