What are the tax implications of buying and selling cryptocurrency with different cost bases?

1 answers

• rrandelJun 18, 2023 · 2 years ago
  When it comes to buying and selling cryptocurrency with different cost bases, it's essential to understand the tax implications. The cost basis of a cryptocurrency refers to the purchase price plus any associated fees. If you sell your cryptocurrency for a higher price than your cost basis, you will have a capital gain and may be subject to capital gains tax. On the other hand, if you sell your cryptocurrency for a lower price than your cost basis, you will have a capital loss, which can be used to offset other capital gains and potentially reduce your tax liability. It's crucial to keep accurate records of your transactions and consult with a tax professional to ensure compliance with tax regulations.
  711

  356