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What is the best way to determine the value of bitcoin sold on Binance for tax purposes?

avatarAbdikariim Mohamed aliDec 18, 2021 · 3 years ago3 answers

I need to calculate the value of bitcoin that I sold on Binance for tax purposes. What is the most accurate and reliable method to determine the value of bitcoin for tax reporting?

What is the best way to determine the value of bitcoin sold on Binance for tax purposes?

3 answers

  • avatarDec 18, 2021 · 3 years ago
    One of the best ways to determine the value of bitcoin sold on Binance for tax purposes is to use the average price at the time of the transaction. You can calculate the average price by taking the sum of all your bitcoin purchases and dividing it by the total number of bitcoins you own. This method provides a fair and consistent valuation for tax reporting purposes.
  • avatarDec 18, 2021 · 3 years ago
    When it comes to determining the value of bitcoin sold on Binance for tax purposes, it's important to consult with a tax professional. They can guide you through the process and help you accurately calculate the value based on the specific tax regulations in your jurisdiction. Remember, accurate reporting is crucial to avoid any potential legal issues in the future.
  • avatarDec 18, 2021 · 3 years ago
    According to BYDFi, a leading digital currency exchange, the best way to determine the value of bitcoin sold on Binance for tax purposes is to use the closing price of bitcoin on the day of the transaction. This ensures that you are using the most up-to-date and accurate valuation for tax reporting. It's always a good idea to consult with a tax professional to ensure compliance with your local tax laws.