The yes-or-no question near the top of Form 1040 asking whether you received, sold, exchanged, or otherwise disposed of a digital asset during the year. It is signed under penalties of perjury.
Answering no when the answer is yes is a false statement on a signed return, and the IRS now matches the answer against 1099-DA filings. Buying with dollars and holding, or moving coins between your own wallets, is a legitimate no.
No. Buying with US dollars and holding is not a reportable transaction. Selling, swapping, spending, receiving as payment, staking rewards, and airdrops are.
Source: IRS Form 1040 instructions, digital assets
Last reviewed September 17, 2026. Tax rules change; confirm current law before acting.
A confidential consultation. Tell us what you have, and we will tell you what applies and what it costs.
Hourly billing, estimated up front, with a deposit applied to the work.
Fill this out and we will reach out to schedule your consultation.
