what is the cost basis for stablecoin

[JamesG1 · Accepted solution]

See the IRS website Digital Assets under Determine your basis.

The basis of property is its cost. Generally, the basis of a digital asset is the cost in U.S. dollars.  Stablecoins such as USDC or USDT are treated as taxable property by the IRS, not cash.  Each unit of a stablecoin has a cost basis equal to its purchase price, including transaction fees.

Find how to determine your basis for your situation in FAQs on virtual currency transactions. 

To determine your basis, you will need this information:

• Type of digital asset you acquired (for example Bitcoin)
• Date and time you acquired the digital asset
• Number of units of the digital asset acquired
• Fair market value of the digital asset when acquired (as measured in U.S. dollars)

Find additional details on Basis of Assets, Publication 551.