I purchase Bitcoin through CashApp, which is required to file a copy of 1099b. I’ve purchased roughly $1,000 worth, and all of that was directly sent to another user’s Bitcoin wallet. Out of the $1,000 I’ve purchased, I’ve only cashed out $20.
My question is, would my “Cost or Other Basis” be $980 and my capital gain $20?
Bit confused on the whole thing, as I’m new to Bitcoin and taxes.
