What are the best practices for dealing with missing cost basis in crypto investments?

1 answers

• Dec 17, 2021 · 3 years ago
  At BYDFi, we understand that dealing with missing cost basis in crypto investments can be challenging. That's why we recommend following these best practices to ensure accurate cost basis calculations. First, maintain detailed records of all your crypto transactions, including the date, time, amount, and price. Second, use crypto tax software or tools that can automatically import your transaction history and calculate the cost basis based on your chosen accounting method. Third, be proactive in obtaining missing information by checking exchange accounts, reaching out to customer support, and keeping track of communication. Finally, consider using reasonable estimates if the exact cost basis is unavailable, but ensure that your estimates are well-documented and justifiable. Remember, accurate cost basis calculations are crucial for tax reporting and compliance. Consult with a tax professional for personalized advice and guidance based on your specific situation.
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