How can I calculate the step-up basis for cryptocurrencies?

3 answers

• Rudransh MaheshwariFeb 06, 2024 · a year ago
  Sure! Calculating the step-up basis for cryptocurrencies involves determining the fair market value of the cryptocurrency at the time of inheritance or gifting. This value is then used as the new basis for calculating capital gains or losses when the cryptocurrency is sold. It's important to keep track of the original purchase price and any subsequent adjustments to the basis to accurately calculate the step-up basis. Consulting a tax professional or using specialized software can help simplify the process.
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• LION ALZEERMay 28, 2024 · a year ago
  Calculating the step-up basis for cryptocurrencies can be a bit complex, but here's a simplified explanation. The step-up basis is the fair market value of the cryptocurrency at the time of inheritance or gifting. To calculate it, you need to determine the value of the cryptocurrency on that specific date. This value becomes the new basis for calculating capital gains or losses when you sell the cryptocurrency. It's recommended to consult a tax professional for accurate calculations based on your specific situation.
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• Joseph ShullMay 16, 2022 · 3 years ago
  When it comes to calculating the step-up basis for cryptocurrencies, it's essential to consider the fair market value at the time of inheritance or gifting. This value becomes the new basis for calculating capital gains or losses. To determine the fair market value, you can use various methods such as checking the prices on reputable cryptocurrency exchanges or consulting historical price data. Remember to keep accurate records of the original purchase price and any adjustments made to the basis. If you're unsure about the process, it's always a good idea to seek advice from a tax professional.
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