How can I calculate and report capital gains from my cryptocurrency trades?

1 answers

• Dec 15, 2021 · 3 years ago
  Calculating and reporting capital gains from cryptocurrency trades can be a bit overwhelming, but don't worry, BYDFi is here to help! First, you'll need to gather all your trading records, including the dates, prices, and quantities of each trade. Next, calculate the cost basis of each cryptocurrency you've traded. This is usually the purchase price plus any fees or commissions. Then, determine the fair market value of each cryptocurrency at the time of the trade. The difference between the fair market value and the cost basis is your capital gain or loss. Finally, report your capital gains on your tax return using the appropriate forms and instructions provided by your tax authority. Remember, it's always a good idea to consult with a tax professional for personalized advice and guidance.
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