Need to report about unused Bitcoin to IRS

[RogerIn]

Planning to invest in cryptocurrencies, and I am learning about taxes as I m new to this world. If I purchase some bitcoins neither I am trading this nor selling it. Still, I have to file a tax return and report about my digital assert to the IRS?

[Shantanu Sharma]

There is no need to report to the IRS if you buy or hold any Bitcoin. Purchasing and holding the bitcoin does not come under the taxable bar.

But if you sell or exchange it for another cryptocurrency or use it to purchase goods or services then it comes under the taxable slab, which means you need to report to IRS.

While filling out your tax return, you must include your digital assets, if you have any. And always consult a tax expert who knows about cryptocurrencies.