What methods can Laslo use to calculate the basis of the crypto coins he received from the airdrop?

5 answers

• Dec 30, 2021 · 3 years ago
  To calculate the basis of the crypto coins received from the airdrop, Laslo can use the FIFO (First-In, First-Out) method. This method assumes that the first coins received are the first ones sold or exchanged. By keeping track of the date and quantity of each coin received, Laslo can calculate the basis by multiplying the quantity of each coin by its purchase price and summing up the total. This method is commonly used for tax purposes and helps determine the capital gains or losses.
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• Dec 30, 2021 · 3 years ago
  Calculating the basis of crypto coins from an airdrop can be a bit tricky. Laslo can start by identifying the date and quantity of each coin received. Then, he can research the market price of each coin on the date of the airdrop. By multiplying the quantity of each coin by its market price on the airdrop date, Laslo can estimate the basis. However, it's important to note that this method may not be accurate as market prices can be volatile. Consulting with a tax professional or using specialized software can provide more accurate calculations.
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• Dec 30, 2021 · 3 years ago
  Laslo can use the specific identification method to calculate the basis of the crypto coins received from the airdrop. This method involves identifying the specific coins that were sold or exchanged and using their individual purchase prices to calculate the basis. By keeping detailed records of each transaction and the corresponding coins involved, Laslo can accurately determine the basis. However, this method requires meticulous record-keeping and may not be practical for large volumes of transactions.
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• Dec 30, 2021 · 3 years ago
  When it comes to calculating the basis of crypto coins received from an airdrop, Laslo can consider using the average cost method. This method involves calculating the average cost per coin by dividing the total cost of all coins purchased by the total quantity. Laslo can then apply this average cost per coin to the quantity of coins received from the airdrop to determine the basis. While this method provides a simplified approach, it may not accurately reflect the actual purchase price of each coin.
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• Dec 30, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends Laslo to use the FIFO (First-In, First-Out) method to calculate the basis of the crypto coins received from the airdrop. This method ensures a systematic and organized approach to determining the basis of coins based on their acquisition order. By following this method, Laslo can accurately calculate the basis and make informed decisions regarding tax obligations or future transactions involving the airdropped coins.
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