How can I accurately calculate the cost basis for cryptocurrency received as a gift?

3 answers

• Gwendolyn HudsonJan 07, 2024 · 2 years ago
  Calculating the cost basis for cryptocurrency received as a gift can be a bit tricky, but it's important for tax purposes. To accurately calculate the cost basis, you'll need to know the fair market value of the cryptocurrency at the time you received it. You can find this information on reputable cryptocurrency exchanges or price tracking websites. Once you have the fair market value, you can use it to determine the cost basis by multiplying the fair market value by the amount of cryptocurrency received. Remember to keep records of the fair market value and the date of the gift for future reference.
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• Piper BurnetteSep 03, 2024 · a year ago
  Hey there! Calculating the cost basis for cryptocurrency received as a gift might seem like a daunting task, but fear not! The first step is to determine the fair market value of the cryptocurrency at the time you received it. You can find this information on popular cryptocurrency exchanges or websites that track cryptocurrency prices. Once you have the fair market value, simply multiply it by the amount of cryptocurrency received to calculate the cost basis. Make sure to keep proper records of the fair market value and the date of the gift for tax purposes. Happy calculating! 😊
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• muhammad faridAug 02, 2022 · 3 years ago
  When it comes to accurately calculating the cost basis for cryptocurrency received as a gift, it's important to consider the fair market value at the time of the gift. This value can be obtained from reputable cryptocurrency exchanges or price tracking websites. Multiply the fair market value by the amount of cryptocurrency received to determine the cost basis. Remember to keep a record of the fair market value and the date of the gift for tax purposes. If you need further assistance, you can also consult with a tax professional who specializes in cryptocurrency transactions.
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