How does the adjusted cost basis affect my taxes on cryptocurrency gains?

1 answers

• SolracSlayerJul 20, 2024 · a year ago
  The adjusted cost basis is an important factor when it comes to calculating your taxes on cryptocurrency gains. It represents the cost of acquiring your cryptocurrency, taking into account any additional expenses. When you sell your cryptocurrency, the difference between the selling price and the adjusted cost basis determines your capital gain or loss. If you have a capital gain, you'll need to pay taxes on that amount. However, if you have a capital loss, you can use it to offset other capital gains or even carry it forward to future years. So, it's essential to keep track of your adjusted cost basis to ensure accurate tax reporting.
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