Question

question 3/3 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? only converting the cryptocurrency to dollars all actions except the original purchase of cryptocurrency only selling some and buying the plane ticket all of the transactions where she made money

Explanation:

In the US, for tax - purposes, cryptocurrency transactions such as converting to dollars, selling, exchanging one type for another, and using it to make purchases (like a plane ticket) are taxable events. The original purchase is not a taxable event. So all actions except the original purchase need to be reported to the IRS.

Answer:

B. All actions except the original purchase of cryptocurrency