Friday, March 8, 2019

BitCoin - Got 2018 1099-K, No 2018 BTC Trades just Account Closure

Do I need to file anything if I received a 1099-K, but didn't trade in 2018 just transferred USD out?

Paid Tax on All Prior BTC Trades (2017)

So prior to Christmas 2017 Bitcoin was high and I didn't want to stress out over the holidays so I cashed out all of my BTC into USD. I did report my BTC trading profit accurately on my 2017 return and paid my fair share. There was a 2017 1099-K that made it easy to report.

No 2018 BTC held nor traded, Got 1099K Anyway

The coin exchange I used emailed a 2018 1099-K for me in early 2019. I was surprised. I pulled my exchange records because I very intentionally did not hold any BTC for all of 2018. It looks like I held no BTC in 2018, but emptied all of my USD that was sitting idle in the account. That USD final withdrawal transaction looks to be what the exchange reported on the 1099-K. Looks to have cleared just after New Years Day when my normal bank accepted the funds.

Do I Need to List The 1099-K?

Do I need to report this transfer of USD from an exchange account to my bank? In my head, I already reported the total trading profit on last year and paid the tax? Does the new 1099-K have to be added to my return as is? Do I report it somehow as a "zero profit" trading? Or is closing the account and transferring USD not qualify as a taxable event?


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