How do I calculate my capital gains from selling digital currencies?

3 answers

• Dec 19, 2021 · 3 years ago
  Sure, calculating capital gains from selling digital currencies can be a bit tricky, but I'll break it down for you. First, you'll need to determine the cost basis of the digital currencies you sold. This is the original purchase price plus any fees or commissions you paid. Next, subtract the cost basis from the sale price to get your capital gains. If the result is positive, you have a capital gain. If it's negative, you have a capital loss. Remember to keep track of all your transactions and consult with a tax professional for accurate calculations and reporting.
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• Dec 19, 2021 · 3 years ago
  Calculating capital gains from selling digital currencies is similar to calculating gains from selling stocks or other assets. You'll need to know the cost basis of the digital currencies, which includes the purchase price and any associated fees. Subtract the cost basis from the sale price to determine your capital gains. It's important to keep accurate records of your transactions and consult with a tax professional to ensure you're reporting your gains correctly.
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• Dec 19, 2021 · 3 years ago
  Calculating capital gains from selling digital currencies can be a complex process, but it's important to accurately report your gains for tax purposes. One way to calculate your capital gains is to use a specific identification method, where you identify the specific digital currencies you sold and calculate the gains based on their individual cost basis. Another method is to use the first-in, first-out (FIFO) method, where you assume that the first digital currencies you purchased are the first ones you sold. It's recommended to consult with a tax professional to determine the best method for calculating your capital gains.
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