What is the impact of missing cost basis on cryptocurrency taxes?

3 answers

• Ali MoghimiMar 05, 2024 · a year ago
  Not having the cost basis for your cryptocurrency can have a significant impact on your tax calculations. The cost basis is the original value of your cryptocurrency when you acquired it. Without this information, it becomes difficult to accurately determine the capital gains or losses when you sell or exchange your cryptocurrency. This can result in incorrect tax reporting and potential penalties from the tax authorities. It is crucial to keep track of the cost basis for all your cryptocurrency transactions to ensure accurate tax reporting.
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• seserisJul 19, 2021 · 4 years ago
  Missing the cost basis for your cryptocurrency can be a real headache when it comes to taxes. The cost basis is like the foundation of your tax calculations. Without it, you're building a house of cards. You need to know the original value of your cryptocurrency when you acquired it to accurately calculate your capital gains or losses. Without this information, you risk overpaying or underpaying your taxes. So, make sure you keep track of your cost basis for all your cryptocurrency transactions to avoid any tax troubles.
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• Abdel_MecDec 28, 2023 · 2 years ago
  When it comes to cryptocurrency taxes, missing the cost basis can be a real pain in the neck. Without knowing the original value of your cryptocurrency when you acquired it, you won't be able to accurately calculate your capital gains or losses. This can lead to incorrect tax reporting and potential audits from the IRS. That's why it's important to use a reliable platform like BYDFi, which automatically tracks your cost basis for all your cryptocurrency transactions. With BYDFi, you can ensure accurate tax reporting and avoid any unnecessary tax headaches.
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