How can I determine the cost basis of cryptocurrency received as a gift?

3 answers

• Nov 28, 2021 · 3 years ago
  Determining the cost basis of cryptocurrency received as a gift can be a bit tricky. The cost basis is the original value of the cryptocurrency at the time it was acquired. To calculate the cost basis, you would need to know the fair market value of the cryptocurrency at the time it was gifted to you. This information can be obtained from the person who gifted you the cryptocurrency or from a reliable source such as a cryptocurrency exchange. Once you have the fair market value, you can use it to calculate the cost basis for tax purposes.
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• Nov 28, 2021 · 3 years ago
  Calculating the cost basis of cryptocurrency received as a gift is important for tax purposes. The cost basis is the value of the cryptocurrency at the time it was acquired. To determine the cost basis, you would need to know the fair market value of the cryptocurrency at the time it was gifted to you. This information can be obtained from the person who gifted you the cryptocurrency or from a reputable cryptocurrency exchange. Once you have the fair market value, you can use it to calculate the cost basis and report it on your tax return.
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• Nov 28, 2021 · 3 years ago
  Determining the cost basis of cryptocurrency received as a gift is crucial for tax reporting. When you receive cryptocurrency as a gift, the cost basis is usually the fair market value of the cryptocurrency at the time it was gifted to you. However, it's important to note that the cost basis may vary depending on the specific circumstances and tax regulations in your jurisdiction. To accurately determine the cost basis, it's recommended to consult with a tax professional or use a reliable cryptocurrency tax software. They can help you calculate the cost basis based on the fair market value and ensure compliance with tax laws.
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