Question
A taxpayer buys and swaps NFTs and stablecoins throughout the year. Are they going to have to mark yes to the digital asset question on
A taxpayer buys and swaps NFTs and stablecoins throughout the year. Are they going to have to mark "yes" to the digital asset question on the form 1040 for the return?
a. Yes, because simply owning any form of digital asset, including NFTs and stablecoins, are reportable with a yes on the form 1040 regardless of activity with the asset.
b. No, the IRS doesn't have sch language on the form 1040 series of returns.
c. No. since the question doesn't specifically state that they have cryptocurrency the don't have to incicate yes on the digital asset questions.
d. Yes, since the swap part of the NFT and stablecoin ownership counts as a form of disposition which constitutes a reportable digital asset transfer.
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