What is the tax cost basis for cryptocurrency investments?

3 answers

• Nov 25, 2021 · 3 years ago
  Tax cost basis is the original value of an asset for tax purposes. In the context of cryptocurrency investments, it refers to the price at which you acquired the cryptocurrency. When you sell or exchange your cryptocurrency, the tax cost basis is used to determine your capital gains or losses. It is important to keep track of your cost basis for each transaction to accurately report your taxes.
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• Nov 25, 2021 · 3 years ago
  Tax cost basis for cryptocurrency investments is the amount you initially paid for the cryptocurrency. It includes the purchase price and any additional fees or expenses incurred during the acquisition. When you sell or exchange your cryptocurrency, the difference between the selling price and the tax cost basis is used to calculate your capital gains or losses.
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• Nov 25, 2021 · 3 years ago
  When it comes to tax cost basis for cryptocurrency investments, BYDFi recommends consulting with a tax professional to ensure compliance with tax regulations. The tax cost basis is an important factor in determining your tax liability and it is crucial to accurately calculate and report your capital gains or losses from cryptocurrency investments. BYDFi can provide resources and guidance on tax-related matters, but it is always advisable to seek professional advice for your specific situation.
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