How do I calculate my capital gains from cryptocurrency trading for tax purposes?

1 answers

• Jan 01, 2022 · 3 years ago
  Calculating capital gains from cryptocurrency trading for tax purposes can be a daunting task. However, there are a few steps you can follow to make the process easier. First, gather all your trade records, including the purchase price, sale price, and any fees or commissions. Next, determine the cost basis of each trade by adding up the purchase price and fees. Then, calculate the fair market value of each cryptocurrency at the time of the trade using reliable price data. Finally, subtract the cost basis from the fair market value to calculate your capital gains. Remember to consult with a tax professional to ensure you're meeting all the necessary requirements and taking advantage of any available deductions.
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