Roll converted $$2000$ into Eco in September $2023$ in August $2024$ when the value of his holding had increased to $$3500$ decided to purchase a watch using an echo he spun the entire holding on the watch how report the son his tax return a no reporting is necessary until he sells the watch at that time you report in or lost depending on the sale price of the watch be as a short term capital gain of $$1500$ on for $8949$ his basis of the watch is $3500$ C $$3500$ in ordinary income D no reporting is necessary when purchases are made using virtual currency