rjs
Level 15
Level 15

Get your taxes done using TurboTax

If you do not have accurate records of the cost basis of your cryptocurrency (or any other assets), when you sell it the IRS will assume that the cost basis is zero. That means that the entire amount of the sale will be treated as taxable capital gain. You must keep good records of your purchases. If the ATM gives you a receipt of some sort, keep the receipt with your records.