Answered

Sydney bought cryptocurrency and then converted some to dollars, sold some, exchanged her Bitcoin for Ethereum, and used some to buy a plane ticket. Which actions involving cryptocurrency does Sydney need to report to the IRS for tax purposes?



Answer :

GinnyAnswer

Final answer:

Sydney needs to report converting cryptocurrency to dollars, selling it, exchanging Bitcoin for Ethereum, and using it to buy a plane ticket to the IRS for tax purposes.


Explanation:

Cryptocurrency transactions that Sydney needs to report to the IRS for tax purposes:

  • Converting cryptocurrency to dollars.
  • Selling cryptocurrency.
  • Exchanging Bitcoin for Ethereum.
  • Using cryptocurrency to buy a plane ticket.

These actions may have tax implications such as capital gains or losses that Sydney should report to the IRS.


Learn more about Cryptocurrency tax reporting here:

https://brainly.com/question/32530484


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