Crypto tax cost basis

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Your cost basis for gifted crypto will depend on both the basis the person who transferred it to you had and the fair market value when you received it. Cost basis in crypto taxation refers to the original value of a crypto asset, crucial for calculating capital gains or losses. The cost basis formula. Because crypto is considered a capital asset, it's taxed based on the difference in value between the moment you acquire an asset, and the moment you dispose of.

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