There are three different methods of calculating the basis of stocks: first-in, first-out (FIFO), last-in, first-out (LIFO), and average cost. The method of calculating the basis of stocks that a taxpayer uses for federal income tax purposes is determined by the taxpayer’s method of accounting. The FIFO method assumes that the taxpayer first sold the […]
What Is Cost Basis In Stocks
When you purchase stock, you don’t just hand over your money and receive a certificate or electronic record in return. You also establish what’s called a “cost basis” for the stock. This is the starting point from which your capital gains or losses will be calculated when you eventually sell the shares. The cost basis […]
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How To Calculate Crypto Tax
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are subject to taxes, and the process of […]
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How To Calculate Cost Basis Crypto
When you buy or sell a cryptocurrency, your cost basis is the price at which you bought or sold it. This is important to know because it affects the taxable capital gains or losses you report when you sell the cryptocurrency. To calculate your cost basis, you need to know: -The amount of money you […]
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