Ask the Taxman- Does one need to report crypto transactions to the IRS if they have no profit and everything is a loss?
Source: Quora
Answer:
The requirement to file is determined by the gross proceeds not the net. For example if you are single with a filing requirement for 2021 ($12,550 if under age 65), you would need to file if your GROSS income exceeds $12,550. Therefore, if you had Gross Proceeds from Crypto transactions of more than 12,550 (assuming you have no other income), you must file, even if the net is less than 12,550 or is a loss.
Answer requested by Tony Voss