What is the adjusted basis of a cryptocurrency sold?

3 answers

• Nov 28, 2021 · 3 years ago
  The adjusted basis of a cryptocurrency sold refers to the original cost of the cryptocurrency plus any adjustments made to that cost over time. It is calculated by taking into account factors such as the purchase price, transaction fees, and any additional costs incurred during the holding period. The adjusted basis is important for tax purposes because it determines the amount of taxable gain or loss when the cryptocurrency is sold. By subtracting the adjusted basis from the sale price, you can calculate the capital gain or loss that needs to be reported on your tax return.
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• Nov 28, 2021 · 3 years ago
  When you sell a cryptocurrency, the adjusted basis is the amount you use to calculate your taxable gain or loss. It includes the original cost of the cryptocurrency plus any adjustments made for things like transaction fees or other costs. To calculate the adjusted basis, you need to keep track of all the relevant information related to the purchase and sale of the cryptocurrency. This information is crucial for accurately reporting your taxes and ensuring compliance with tax laws.
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• Nov 28, 2021 · 3 years ago
  The adjusted basis of a cryptocurrency sold is the original cost of the cryptocurrency plus any adjustments made to that cost. It is an important factor in determining the taxable gain or loss when selling cryptocurrency. For example, if you bought a cryptocurrency for $100 and later sold it for $150, your adjusted basis would be $100. This means that you would have a taxable gain of $50. It's important to keep track of the adjusted basis to accurately report your taxes and avoid any potential penalties or audits from the tax authorities.
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