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  • Cryptocurrency Tax Guide for US Individuals
    • Virtual Currency & Cryptocurrency
    • Who are Recap?
  • CRYPTOCURRENCY TAX
    • Do I Need to Pay Tax on my Crypto?
    • Which Taxes Apply?
      • Capital Gains Tax (CGT)
      • Income Tax
      • Non-Taxable Transactions
    • How Much Tax Will I Pay?
    • Capital Gains Tax
      • Calculating the Capital Gains and Losses
      • Cost Basis Methods
      • Disposal proceeds
        • Non Taxable Events
        • Taxable Events
        • Donating cryptocurrency to a charitable organization
        • Gifting cryptocurrency to another person
    • Income Tax
      • Receiving cryptocurrency from mining
      • Receiving cryptocurrency rewards
      • Forks
      • Airdrops
      • Tax on Tokenswaps and Mainnetswaps
    • Deductibles and Reducing Capital Gains
  • TRANSACTION TYPES
    • 💷Selling Crypto for Fiat
    • 🛍️Purchases using Crypto
    • 🔄Exchanging one crypto for a different crypto
    • 🎗️Donations to Qualified Charities
    • 🎁Gifts
    • 🎈Airdrops
    • 🤝Staking
    • 💸Transfers
    • 🍴Forks
    • ⛏️Mining
    • 👛Employment income
    • 🚨Lost & Stolen Crypto
    • 💧Liquidity Pools
    • 🔮Cryptoasset derivatives (CFDs, Futures and Margin Trading)
    • 💼Crypto Loans
    • 💎Lending Rewards
    • 🪞Reflections Rewards
    • 👥Referral Income
    • 💳Cashback
    • 🎨NFTs (Non Fungible Tokens)
    • 🎮Play-to-earn gaming NFTs
  • Record Keeping
  • Reporting Income and Gains to the IRS and Paying the Tax
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  • Disposal proceeds of a Fiat Trade
  • Selling Crypto for Fiat in Recap

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  1. TRANSACTION TYPES

Selling Crypto for Fiat

PreviousDeductibles and Reducing Capital GainsNextPurchases using Crypto

Last updated 3 years ago

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Selling cryptocurrency for a fiat currency is a capital event that can subject you to a capital gain or loss. This is dependent on the fair market value of the cryptocurrency when it was bought and sold. Remember: When you dispose of property that was held as a capital asset, it will be subject to capital gains and losses. When selling cryptocurrency, you must note the amount you sold it for and the original purchase price (or cost basis), with any difference generating a capital gain or loss.

Disposal proceeds of a Fiat Trade

As discussed in a previous section, selling cryptocurrency for fiat currency is a capital event, and the taxpayer may experience a capital gain or loss. A key rule of thumb to remember is that if your cryptocurrency is leaving your possession, it is a disposition, and you may be subject to a capital gain or loss.

  1. Simply connect your exchange accounts or wallets through our automated integrations or enter your data manually via the user interface or CSV file.

  2. Recap automatically generates a disposal when selling a cryptoasset or an acquisition when buying a cryptoasset. All USD valuations of the assets are determined by Recap's own market valuation engine using both foreign and cryptocurrency exchange rates.

  3. See the tax impact of every trade (example below) in the tax tab or download a PDF tax report

Selling Crypto for Fiat in

has been designed from the ground up to work out the capital gains impact of every crypto-to-fiat or fiat-to-crypto trade.

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