In the context of cryptocurrencies, “cost basis” refers to the initial outlay paid for digital assets. It is an important consideration when calculating capital gains or losses from the sale or disposal of cryptocurrencies. The capital gains or losses on an investor’s crypto sale are calculated as the selling price minus the cost basis. To avoid tax complications, the cost basis must be reported accurately; otherwise, one may have an underpayment or overpayment of taxes, which may result in fines from the tax authorities. Furthermore, accurate reporting is much more important due to the increased scrutiny that tax ... (full story)