How does Turbo Tax calculate the cost for reporting cryptocurrency gains?

3 answers

• John BruntSep 06, 2024 · 10 months ago
  Turbo Tax calculates the cost for reporting cryptocurrency gains by using the FIFO (First-In, First-Out) method. This means that the cost basis of the first cryptocurrency you acquired is used to calculate gains or losses when you sell or dispose of a portion of your holdings. It's a widely accepted method for determining the cost basis of assets, including cryptocurrencies. Turbo Tax automatically tracks your cryptocurrency transactions and applies the FIFO method to calculate your gains or losses.
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• Mohamed ShokryJun 26, 2021 · 4 years ago
  When it comes to reporting cryptocurrency gains, Turbo Tax uses the FIFO (First-In, First-Out) method. This means that the cost basis of the earliest acquired cryptocurrency is used to calculate gains or losses when you sell or dispose of your holdings. Turbo Tax keeps track of your cryptocurrency transactions and applies the FIFO method to ensure accurate reporting. It's important to note that the FIFO method is just one way to calculate cost basis, and there are other methods like LIFO (Last-In, First-Out) and specific identification.
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• Baldwin PopeNov 24, 2024 · 8 months ago
  Turbo Tax calculates the cost for reporting cryptocurrency gains using the FIFO (First-In, First-Out) method. This method assumes that the first cryptocurrency you acquired is the first one you sold or disposed of. Turbo Tax automatically tracks your cryptocurrency transactions and applies the FIFO method to accurately calculate your gains or losses. However, it's worth mentioning that there are alternative methods for calculating cost basis, such as LIFO (Last-In, First-Out) and specific identification. Each method has its own advantages and disadvantages, so it's important to consult with a tax professional to determine the best approach for your specific situation.
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