What is the cost basis of mined cryptocurrency?

3 answers

• Sandeep SalariaNov 27, 2020 · 5 years ago
  The cost basis of mined cryptocurrency refers to the value of the cryptocurrency at the time it was acquired through mining. It is used to determine the capital gains or losses when the mined cryptocurrency is sold or exchanged. The cost basis is important for tax purposes as it affects the amount of taxable income or deductible losses. It is generally calculated based on the fair market value of the cryptocurrency at the time of mining.
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• BurhanuddinAug 15, 2023 · 2 years ago
  The cost basis of mined cryptocurrency is like the foundation of a building. It represents the starting point for calculating the profit or loss when you sell or trade your mined cryptocurrency. It's crucial to keep track of the cost basis because it directly impacts your tax obligations. If you don't know the cost basis, you may end up paying more taxes than necessary. So, make sure to accurately record the value of your mined cryptocurrency when you acquire it.
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• MrCheeseBrNov 17, 2020 · 5 years ago
  When it comes to the cost basis of mined cryptocurrency, BYDFi has a great feature that automatically calculates it for you. This feature takes into account the fair market value of the cryptocurrency at the time of mining and provides you with an accurate cost basis. It makes tax reporting much easier and ensures compliance with tax regulations. So, if you're mining cryptocurrency, consider using BYDFi to simplify your tax obligations.
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