Sydney bought cryptocurrency and then converted some to dollars, sold some, exchanged her Bitcoin for Ethereum, and used some to buy a plane ticket. Which actions involving cryptocurrency does Sydney need to report to the IRS for tox purposes? Only converting the cryptocurrency to dollars All actions except the original purchase of cryptocurrency Only selling some and buying the plane ticket All of the transactions where she made money

When it comes to reporting cryptocurrency transactions to the IRS, Sydney should know that basically any time she sells, trades, or uses crypto, it's a taxable event. This means she must report all actions except the initial purchase. Selling, converting to dollars, trading Bitcoin for Ethereum, and using crypto to buy goods (like her plane ticket) are all reportable. So, keeping meticulous records is crucial! Tax reporting for crypto can be a slippery slope if you're not careful! Common mistakes include not tracking the basis (what she paid) for her assets, overlooking exchanges between cryptocurrencies, or failing to report small transactions. Even if the profits seem minor, the IRS expects accuracy on gains and losses, so keeping that ledger tidy is key!