Crypto tax is calculated by determining the taxable events, such as buying, selling, trading, or earning cryptocurrency, and then calculating the associated gains or losses. The specific method and rules for calculating crypto tax can vary depending on the country’s tax laws and regulations. Generally, you need to track the cost basis (purchase price) and the fair market value of your crypto at the time of each transaction. By subtracting the cost basis from the proceeds, you can determine the capital gain or loss.
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