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grandmabee

Schedule 1 with check box for virtual currency

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So if the only thing on schedule is the check box for No on the virtual currency we still have to attach the schedule one to the tax returns?

Couldn't they have put it on page 1?

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The question and checkbox aren't required to be answered unless Schedule 1 has information other than that on it.  There's a lot more, but here is a snippet from the 1040 instructions for Sch 1:

 

Quote

If, in 2019, you have not engaged in any transaction involving virtual currency, and you don't otherwise have to file Schedule 1, you don't have to do anything further. If you otherwise have to file Schedule 1, check the “No” box.

 

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44 minutes ago, Randall said:

What is a client answers yes.  Is there something else we have to do?

 

 

Unless your client sold virtual currency during 2019, I don't think there are any other requirements other than checking the box.  

Here's a decent article included in Forbes:

https://www.forbes.com/sites/shehanchandrasekera/2019/12/20/cryptocurrency-question-on-irs-schedule-1-part-1-of-6/#3cb4df5c673a

 

An excerpt from the article suggests the box must be completed if you do have any Crypto affiliation even if you don't have any other information to report on Part 1 or Part II of Schedule 1.  

Best Practice Is To Answer The Crypto Question

According to the draft instructions for 2019 Schedule 1, if you have any crypto affiliation covered by the question, you must check “yes”, even if you do not have anything to report on Part I and Part II of Schedule 1. Leaving this question blank is not advised. As with the example above, there may be situations where the taxpayer will check “yes” but there will not be any reportable transactions on any other tax forms. This is completely fine!

 

 

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It appears that ATX is forcing us to answer the question.  Based on the answer, hopefully it won't print Schedule 1 for a "no" answer where Schedule 1 is not otherwise required.

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For me, it shows up in red when I do the check return.  Although I never got the message when doing a dependent's return not claiming self.

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On 2/4/2020 at 3:27 AM, Randall said:

What is a client answers yes.  Is there something else we have to do?

 

 

If cryptocurrency is sold, then there would be gains to be reported on 8949 to pass to Sch D as I remember it. In the last CPE I took discussing this they argued your kids would technically have this if they played world of warcraft. 

Oh the pits the IRS keeps digging. At some point we'll all just join the vanlife movement and turbotax will be the only option 😉

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