Compared to traditional assets, it’s harder to determine the value of cryptocurrency because it fluctuates so quickly and isn’t controlled by a single entity. Fair market value (FMV) is the price at which crypto would sell if both the buyer and seller were willing and knowledgeable. The IRS in the US treats bitcoin as property and applies regular tax rules to determine gains, losses, income recognition, and compliance. The FMV serves as the basis for all these calculations. Studies from accounting platforms and regulatory guidelines show that figuring out the right FMV can help you avoid audit concerns and make ... (full story)