Back in Sep2021, saw that Paypal was offering cryptos. Bought some with play money. In late 2021, it had gone up by more than 50%. Yesterday, I sold them at 66% loss. Do they send out 1099 forms for cryptocurrency “investments”? Does anyone here have experience dealing with this?
Dunno about PayPal, but Robinhood does. So I'm sure they do too. By law, they have to. I haven't yet sold my crypto, although I own a negligible amount.
@pratik They have to send documentation showing loss/gain if they consider these as investments. I am just not sure what cryptocurrencies are classified as. I also had only a couple of hundred dollars, not much. Wanted to get whatever I can before it all goes to zero.
I know there's a way to claim the loss, but if no one here has any insights, that sounds like something for a tax attorney or accountant.
@lukemperez Yeah. There is plenty of time to figure this out. It is something I'll have to worry about around April 2024. :)
I have not sold crypto yet dunno how the tax forms look but they’re considered as investments although technically cryptobros want to consider it as currency. I must get rid of my meager holdings too.