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How can I calculate capital gains tax on my cryptocurrency holdings?

avatarByrd CovingtonDec 18, 2021 · 3 years ago2 answers

I have been investing in cryptocurrencies for a while now and I am wondering how I can calculate the capital gains tax on my cryptocurrency holdings. Can you provide me with a step-by-step guide or some tips on how to do this?

How can I calculate capital gains tax on my cryptocurrency holdings?
Cryptocurrency
Capital Gains Tax
Tax Calculation

2 answers

  • avatarDec 18, 2021 · 3 years ago
    Calculating capital gains tax on your cryptocurrency holdings might sound like a headache, but fear not! Here's a simple guide to help you out. First, gather all the necessary information, such as the dates and amounts of your cryptocurrency transactions. Next, determine the cost basis of each cryptocurrency you sold. This is the original value of the cryptocurrency when you acquired it. Subtract the cost basis from the sale price to calculate your capital gain or loss. Finally, apply the appropriate tax rate to determine the capital gains tax. Remember to keep accurate records and consult with a tax professional if you have any doubts.
  • avatarDec 18, 2021 · 3 years ago
    Calculating capital gains tax on your cryptocurrency holdings might sound like a headache, but fear not! Here's a simple guide to help you out. First, gather all the necessary information, such as the dates and amounts of your cryptocurrency transactions. Next, determine the cost basis of each cryptocurrency you sold. This is the original value of the cryptocurrency when you acquired it. Subtract the cost basis from the sale price to calculate your capital gain or loss. Finally, apply the appropriate tax rate to determine the capital gains tax. Remember to keep accurate records and consult with a tax professional if you have any doubts.

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