sydney bought cryptocurrency and then converted some to dollars, sold some, exchanged her bitcoin for…

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?\nonly converting the cryptocurrency to dollars\nall actions except the original purchase of cryptocurrency\nonly selling some and buying the plane ticket\nall of the transactions where she made money

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?\nonly converting the cryptocurrency to dollars\nall actions except the original purchase of cryptocurrency\nonly selling some and buying the plane ticket\nall of the transactions where she made money

Answer

Brief Explanations:

In the US, cryptocurrency - related taxable events include converting cryptocurrency to fiat currency (like dollars), selling cryptocurrency, exchanging one cryptocurrency for another (e.g., Bitcoin for Ethereum), and using cryptocurrency to purchase goods or services (like a plane ticket). The original purchase of cryptocurrency is not a taxable event.

Answer:

B. All actions except the original purchase of cryptocurrency