Question

assessment
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:

Under US tax rules, the initial purchase of cryptocurrency is not a taxable event, but any disposal (selling, converting to fiat, exchanging for another crypto, or using to pay for goods/services) triggers a reportable event as it may result in a gain or loss.

Answer:

All actions except the original purchase of cryptocurrency