How can I calculate capital gains for my cryptocurrency investments?

1 answers

• Nov 27, 2021 · 3 years ago
  Calculating capital gains for your cryptocurrency investments can be a bit confusing, but don't worry, I've got you covered! 1. Determine the purchase price: Start by finding out how much you paid for each cryptocurrency you sold. This includes the original purchase price as well as any transaction fees. 2. Calculate the selling price: Next, figure out how much you received when you sold the cryptocurrency. This is the total amount of money you got, minus any transaction fees. 3. Calculate the gain or loss: Subtract the purchase price from the selling price to calculate your gain or loss. If the result is positive, you made a profit. If it's negative, you made a loss. 4. Report it on your tax return: Finally, make sure to report your capital gains or losses on your tax return. Check with your local tax authority for specific instructions. Remember to keep accurate records of your transactions and consult with a tax professional if needed. I hope this helps! If you have any more questions, feel free to ask.
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