What is the process for determining the capital gains tax on my digital currency holdings?

1 answers

• ThityJul 28, 2022 · 3 years ago
  Determining the capital gains tax on your digital currency holdings can be a complex process. First, you'll need to determine the cost basis of your digital currency, which is the original purchase price. Then, you'll need to calculate the fair market value of the currency at the time of the sale. The difference between the fair market value and the cost basis is your capital gain or loss. Finally, you'll need to apply the appropriate tax rate to your capital gain to determine the amount of tax owed. It's important to keep accurate records of your digital currency transactions and consult with a tax professional to ensure you are correctly reporting your capital gains.
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