Match up your sales with the appropriate Bitcoin you used @tcssimba. If you made one BTC purchase and had multiple sales from the one purchase, then you would divide the amount of BTC sold by the total purchase.
For example if you bought .25 BTC for $2,500 (including transaction fees) and made five sales of .05 BTC then the cost basis would be (.05/.25) x $2,500 or $500 per sale.
If you made multiple purchases and sales, you can decide what purchases you sold. It doesn't have to be the earliest. You can also use average basis.
See Special Rules for Mutual Funds. The IRS generally treats crypto sales similar to mutual fund sales.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
