holds you responsible for reporting all income and transactions. You may want some caffeine handy, though. Cost basis There is no standard guidance from the IRS on how to apply your cost basis to individual sales or exchanges of bitcoin, ethereum, and other cryptocurrencies. Gains are computed as proceeds minus your cost basis (what you paid for the original crypto). This educational guide was prepared for general informational purposes, and we hope it helps, but we just cant replace the attention a tax professional will give your unique situation. Refer a friend Already a Coinbase customer?
In 2017s tax season, we received a lot of questions from crypto newbies and experienced customers alike. Transactions must be reported at their fair market value as measured in US dollars. First, lets get this out of the way. Even if youre in the Just hodl it camp, its worth evaluating your crypto transactions in 2018 to determine if you may owe taxes. Ordinary assets Ordinary assets include things like inventory and stock-in-trade (i.e. This will be used to calculate your gains and losses. Join the worlds most trusted place to buy and sell bitcoin, ethereum, litecoin, and more. Form 1099-K (Payment Card and Third Party Network Transaction) Only the government could come up with a tongue-twister of a name like this.
Tax Tips for Bitcoin and Virtual Currency - TurboTax Tax
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