The IRS has released a new Form 1040 for the 2019 tax year. Consistent with recent IRS guidance, the form requires (1) virtual currency to be treated as property (and generally as a capital asset), (2) realization upon the use of virtual currency to purchase goods, and (3) realization following an air drop of virtual currency. Schedule 1 requires taxpayers to report transactions in virtual currency, whether or not taxable.
For a discussion of other IRS actions relating to virtual currency transactions, please see our previous BrassTax articles here, here and here.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
