# USDT (Crypto) and Taxes



## melkien (May 12, 2021)

Hi everyone,

I'm an expat and wanted to ask if anyone would happen to know complicated it is to include cryptos in the tax forms ( I saw a checkbox asking about cryptos this year, but Ive never used them before). I would not be looking for capital gains; rather, it woul djust be exchanging US dollars to USDT at the same amount, and sending that to a wallet. There would not be any capital gain to be made, it is just an alternative way for me to get USD in hand in my country, but would like to know if tax-wise I will have to report this and if so, as a 0 capital gain?

Thank you


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## Moulard (Feb 3, 2017)

Yes, you will have to report it. According to instructions ...



> If you disposed of any virtual currency that was held as a capital asset through a sale, exchange, or transfer, use Form 8949 to figure your capital gain or loss and report it on Schedule D (Form 1040).


So long as USDT remains pegged against the U.S. dollar and maintains a 1-to-1 ratio with the U.S. dollar in terms of value there should never be currency gains due to fluctuation in value but it would still be reportable on Schedule D and Form 8948 with zero gain.

You just have to remember that the USD is your functional currency so all transactions in and out have to be reverted back to USD for the purposes of CGT.


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