What is a crypto cost basis?

Typically, your cost basis is the fair market value of your crypto at the time of receipt, plus any fees directly related to the acquisition. If you acquired your crypto at multiple price points, you can use a cost basis method like HIFO, LIFO, or FIFO to calculate your cost basis. You can’t pay your crypto taxes without knowing your cost basis.

What is the cost basis of a bitcoin?

If you paid USD 20,000 to acquire one bitcoin on August 1st, the cost basis would be USD 20,000. The cost basis is important because it's essential for calculating the gains and losses. While determining the cost basis for a particular coin is pretty straightforward, calculating gains and losses can quickly become complicated.

Can crypto tax software help you track your cost basis?

If you have trouble tracking your cost basis across multiple wallets and exchanges, crypto tax software can help. CoinLedger is built to help you aggregate all of your crypto transactions, making it easier than ever to track your cost basis over time and keep a complete record of your gains and losses.

How do Canadian taxpayers calculate Crypto Capital gains & losses?

The Canadian Revenue Agency says taxpayers must use the adjusted cost basis method when calculating crypto capital gains and losses. The adjusted cost basis method is the cost of an asset plus any fees related to it.