How does the cost basis of digital assets affect capital gains taxes?

1 answers

• Nov 23, 2021 · 3 years ago
  As an expert in the digital asset industry, I can tell you that the cost basis of your digital assets is a crucial factor in determining your capital gains taxes. When you sell your digital assets, the difference between the selling price and the cost basis is considered your capital gain or loss. If the selling price is higher than the cost basis, you'll have a capital gain and will owe taxes on that gain. However, if the selling price is lower than the cost basis, you'll have a capital loss, which can be used to offset other capital gains. It's important to keep track of your cost basis and consult with a tax professional to ensure you accurately report your capital gains taxes.
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