How can I determine the cost basis of virtual currency that I inherited?

3 answers

• Saito HeikeOct 04, 2023 · 3 years ago
  Determining the cost basis of virtual currency that you inherited can be a bit tricky, but it's important for tax purposes. One way to calculate the cost basis is to find out the fair market value of the virtual currency on the date of the original owner's death. This can usually be obtained from the estate's executor or by checking historical price data on reputable cryptocurrency exchanges. Once you have the fair market value, you can use it as the cost basis when calculating your capital gains or losses.
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• Keating LarsonJun 09, 2022 · 4 years ago
  When it comes to determining the cost basis of virtual currency that you inherited, it's essential to keep detailed records. You should gather any documentation related to the inheritance, such as the will or any legal documents. Additionally, if the virtual currency was held in a digital wallet, make sure to gather all transaction records and statements. These records will help you determine the cost basis and provide evidence to support your calculations if needed.
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• Mubarek JemalMar 01, 2023 · 3 years ago
  Determining the cost basis of virtual currency that you inherited can be complex, but there are resources available to help. One option is to consult with a tax professional who specializes in cryptocurrency. They can guide you through the process and ensure that you accurately calculate the cost basis. Additionally, some cryptocurrency exchanges, like BYDFi, provide tools and resources to help users determine their cost basis. These tools can be a valuable resource in calculating the cost basis of virtual currency that you inherited.
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