How can I calculate my capital gains and losses on cryptocurrency trades?

1 answers

• Sadock MasanjaAug 01, 2020 · 5 years ago
  Calculating capital gains and losses on cryptocurrency trades is an important step in managing your investments and staying compliant with tax regulations. To calculate your gains or losses, you'll need to determine the cost basis and the fair market value of your cryptocurrencies at the time of each trade. The cost basis is the original purchase price, including any fees or commissions, and the fair market value is the price at which the cryptocurrency was traded. Subtracting the cost basis from the fair market value will give you your capital gains or losses. It's important to keep accurate records of your trades, including dates, amounts, and prices, as well as any fees or commissions paid. This will make it easier to calculate your gains and losses accurately and report them correctly on your tax return. If you're unsure about the calculations, consider consulting a tax professional or using specialized software to ensure accuracy.
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