What is the yearly average exchange rate for cryptocurrencies according to the IRS?
Paweł SarnackiDec 27, 2021 · 3 years ago3 answers
Can you provide information on the yearly average exchange rate for cryptocurrencies as determined by the Internal Revenue Service (IRS)? I am interested in understanding how the IRS calculates the average exchange rate for cryptocurrencies on an annual basis.
3 answers
- Dec 27, 2021 · 3 years agoThe IRS does not provide a specific yearly average exchange rate for cryptocurrencies. Instead, they require taxpayers to use a reasonable exchange rate based on available sources. It is recommended to use reputable cryptocurrency exchanges or websites that provide historical exchange rate data. The IRS expects taxpayers to make a good faith effort in determining the fair market value of their cryptocurrency transactions.
- Dec 27, 2021 · 3 years agoWhen it comes to determining the yearly average exchange rate for cryptocurrencies according to the IRS, it's important to note that the IRS does not publish an official rate. Instead, they expect taxpayers to use a reasonable exchange rate based on reliable sources. This means that you should refer to reputable cryptocurrency exchanges or financial websites that provide historical exchange rate data. By using a reliable source, you can ensure that your calculations are accurate and in compliance with IRS guidelines.
- Dec 27, 2021 · 3 years agoAccording to BYDFi, a leading cryptocurrency exchange, the IRS does not provide a specific yearly average exchange rate for cryptocurrencies. Taxpayers are expected to use a reasonable exchange rate based on available sources. It is advisable to consult reputable cryptocurrency exchanges or financial websites that provide historical exchange rate data. This will help ensure that your cryptocurrency transactions are accurately reported and comply with IRS regulations.
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