Back in Sep2021, saw that Paypal was offering cryptos. Bought some with play money. In late 2021, it had gone up by more than 50%. Yesterday, I sold them at 66% loss. Do they send out 1099 forms for cryptocurrency “investments”? Does anyone here have experience dealing with this?

@Parag Dunno about PayPal, but Robinhood does. So I'm sure they do too. By law, they have to. I haven't yet sold my crypto, although I own a negligible amount.

@pratik They have to send documentation showing loss/gain if they consider these as investments. I am just not sure what cryptocurrencies are classified as. I also had only a couple of hundred dollars, not much. Wanted to get whatever I can before it all goes to zero.

@Parag I know there's a way to claim the loss, but if no one here has any insights, that sounds like something for a tax attorney or accountant.

@Parag I have not sold crypto yet dunno how the tax forms look but they’re considered as investments although technically cryptobros want to consider it as currency. I must get rid of my meager holdings too.