Buying or selling cryptocurrency as an investmentīuying cryptocurrency isn’t a taxable event by itself. You can use a Crypto Tax Calculator to get an idea of how much tax you might owe from your capital gains or losses from crypto activities. Next, you determine the sale amount and adjust (reduce) it by any fees or commissions you paid to close the transaction.įinally, you subtract your adjusted cost basis from the adjusted sale amount to determine the difference, resulting in a capital gain if the amount exceeds your adjusted cost basis, or a capital loss if the amount is less than your adjusted cost basis. This final cost is called your adjusted cost basis. Generally, this is the price you paid, which you adjust (increase) by any fees or commissions you paid to engage in the transaction. When calculating your gain or loss, you start first by determining your cost basis on the property.
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