Andrew_W
Employee Tax Expert

Get your taxes done using TurboTax

Hi @myraboenke,

 

Your cost basis is generally what you paid for the asset when you purchased it. If you purchased the bitcoin within a crypto exchange, any statements they provide would show what you paid for the asset and the date of the transaction. If you purchased the crypto in another manner, you will want to review any records you have of the transaction (bank statements, etc.) to determine the amount paid for the asset and date of the transaction.

 

Beginning with tax year 2023, crypto exchanges will be issuing 1099-B forms, similar to investment/brokerage accounts. These forms will have cost basis information that the exchange is aware of. You will want to confirm with your records that these are correct, especially if you have transferred assets between exchanges.

 

This is assuming you purchased the bitcoin with US dollars (USD).

 

Here are some general tax tips for cryptocurrency: https://turbotax.intuit.com/tax-tips/tax-payments/tax-tips-for-bitcoin-and-virtual-currency/L1ZOgU00...

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