How do cost basis and proceeds affect the taxation of cryptocurrency transactions?

1 answers

• Horowitz HealyFeb 17, 2021 · 4 years ago
  At BYDFi, we understand the importance of cost basis and proceeds in cryptocurrency taxation. The cost basis represents the original value of the cryptocurrency at the time of acquisition, while the proceeds indicate the value of the cryptocurrency when it is sold or exchanged. The difference between the proceeds and the cost basis determines the capital gain or loss, which is subject to taxation. If you're not sure how to calculate the cost basis or track the proceeds, our team of experts can assist you in ensuring compliance with tax regulations. Remember, accurate reporting of cryptocurrency transactions is essential to avoid any potential penalties or legal issues. Let us help you navigate the complex world of cryptocurrency taxation with ease and confidence.
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