@nbizic56 thank you for the question. For background, your cost basis is the original price you paid for a coin/token, plus any transaction fees. You subtract your cost basis from the price you sold an asset for to calculate your capital gains or losses. You need to calculate your capital gains anytime you sell, swap, or spend crypto.
The good thing here @nbizic56 is that you just have ETH. So, this is how I would go about it, with the exception of the mining:
- Start by downloading your complete transaction history from each wallet or exchange you used during the tax year.
- All this information must be combined into a single data set. Every buy, sell, trade, deposit, and transfer between accounts should be included.
So, when you earn cryptocurrency from mining, it counts as regular taxable income. You owe tax on the entire value of the crypto on the day you receive it, at your marginal income tax rate. Your tax returns may be helpful for the mining income.
Remember, 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. As you are selling on one exchange many transactions may have no basis.
Be well and safe.
All the best,
Marc T.
TurboTax Live Select Time Tax Expert
26 Plus Years of Experience Helping Clients
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