What are the tax implications of buying and selling cryptocurrency with different cost bases?

1 answers

• Dec 15, 2021 · 3 years ago
  When it comes to buying and selling cryptocurrency with different cost bases, it's essential to understand the tax implications. The cost basis of a cryptocurrency refers to the purchase price plus any associated fees. If you sell your cryptocurrency for a higher price than your cost basis, you will have a capital gain and may be subject to capital gains tax. On the other hand, if you sell your cryptocurrency for a lower price than your cost basis, you will have a capital loss, which can be used to offset other capital gains and potentially reduce your tax liability. It's crucial to keep accurate records of your transactions and consult with a tax professional to ensure compliance with tax regulations.
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