At Fold, we aim to make understanding your tax obligations straightforward. While we don't provide tax advice, we can help you navigate your documents.
Tax documents provided by Fold
If you've sold bitcoin through Fold during the calendar year, aka funded your Fold Card with Push to Card, then you'll be able to download from the Fold App a Form 1099-B and a Gain/Loss Statement by February 15th of the following year.
Form 1099-B: This reports the proceeds from your bitcoin sales to the IRS.
Gain/Loss Statement: This provides a detailed summary of each transaction, including costs, revenues, and profits or losses.
Other documents provided by Fold
If you’ve performed any bitcoin transactions on the Fold App, such as buying, selling, or receiving bitcoin, then you’ll be able to download a Bitcoin Transaction History CSV statement from the app’s Bitcoin tab at any time.
When are transactions taxable?
Taxable events typically include*:
- Selling your bitcoin for U.S. dollars.
- Using bitcoin to buy goods or services.
Non-taxable transactions generally include*:
- Earning sats as cashback rewards on Fold Card purchases.
- Receiving bitcoin into Fold from another wallet.
- Buying bitcoin with U.S. dollars.
- Transferring bitcoin between your own wallets.
Understanding cost basis
Cost basis* is the original value paid for an asset, including fees, used to calculate capital gains or losses for tax purposes when the asset is sold.
Purchased on Fold: If you purchased bitcoin on Fold, we'll provide the cost basis for those transactions via the downloaded documents we provide by February 15 of the following year (Form 1099-B and Gain/Loss Statement).
Received from another wallet: We cannot provide a cost basis for bitcoin received from external wallets. You'll need to track that information independently for accurate reporting.
Your responsibilities
The tax implications of bitcoin transactions can be complex. You are responsible for determining and reporting any applicable taxes. For personalized advice, consult a tax professional.
Where to learn more
For more guidance, the IRS provides resources and FAQs on virtual currency transactions. Fold facilitates access to your transaction history and documents, but consult experts for detailed tax advice. Remember, this article is informational only.
*FAQs on virtual currency transactions
BitGo and Fortress Trust provide Bitcoin services. See BitGo Terms of Use here, and Fortress Terms of Use here.
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