How does the cost base affect the taxation of cryptocurrency transactions?

1 answers

• Dec 27, 2021 · 3 years ago
  At BYDFi, we understand the importance of the cost base in the taxation of cryptocurrency transactions. The cost base represents the original purchase price of the cryptocurrency, which includes any associated fees or charges. When you sell or exchange the cryptocurrency, the difference between the selling price and the cost base determines whether you have a capital gain or loss. If the selling price is higher than the cost base, you'll have a capital gain that may be subject to taxation. On the other hand, if the selling price is lower than the cost base, you'll have a capital loss that can be used to offset other gains. It's crucial to keep track of your cost base for accurate tax reporting and compliance with tax regulations.
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