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Either of the two methods you mentioned above will work, but you will have to be consistent. Choose one of them and use that one uniquely.
This tool may help you.
The only way to determine the exact basis at the time of purchase to have documented how much your spent. Otherwise, you will have to do a very close approximate.
Calculating the initial basis in a cryptocurrency investment is straightforward. When U.S. dollars (USD) are used to purchase a major cryptocurrency such as bitcoin (BTC) or ethereum (ETH), the basis in that investment will be the amount of the fiat currency used to purchase it, which is no different from establishing a basis for numerous other capital assets. However, cryptocurrency investing can quickly become a nightmare for basis calculation from there.
The only way to determine the exact basis at the time of purchase to have documented how much your spent. Otherwise, you will have to do a very close approximate.
Calculating the initial basis in a cryptocurrency investment is straightforward. When U.S. dollars (USD) are used to purchase a major cryptocurrency such as bitcoin (BTC) or ethereum (ETH), the basis in that investment will be the amount of the fiat currency used to purchase it, which is no different from establishing a basis for numerous other capital assets. However, cryptocurrency investing can quickly become a nightmare for basis calculation from there.
Here is how to amend:
Amend your 2017 return if you need to change or correct something after you already filed it.
Keep in mind: You have 3 years from the date you filed your 2017 return (or 2 years after you paid the tax due, whichever is later) to file an amended return.
@Cynthiad66, big thank you!
so basis calculation without use of fiat currency is what I’m struggling with at the moment.
the exchange was Bitcoin to SiaCoin. I know how much Bitcoin was spent in the transfer, but obviously the price of Bitcoin fluctuates every moment.
is there a GAAP method to estimate basis of an asset for asset exchange when you don’t know the exact value of the assets at the time of the exchange?
The two ways I can think of doing this are:
1. Using average daily price of Bitcoin on that day and use that as my basis, or;
2. take the price at the beginning of the day and at the end of the day, find the rate of change and figure out what the straight line price was at the time of the exchange.
any thoughts?
thanks again!
Either of the two methods you mentioned above will work, but you will have to be consistent. Choose one of them and use that one uniquely.
This tool may help you.
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