> For the complete documentation index, see [llms.txt](https://docs.recap.io/us-tax-guide-for-individuals/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.recap.io/us-tax-guide-for-individuals/transaction-types/selling-crypto-for-fiat.md).

# Selling Crypto for Fiat

![](/files/OVvEFJ4UvJe3q59toji1)

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

![](/files/WpVLp8WMUXMBnclJs8gf)

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.

## Selling Crypto for Fiat in [Recap](https://recap.io/)

[Recap](https://docs.recap.io/us-tax-guide-for-individuals/transaction-types/www.recap.io) has been designed from the ground up to work out the capital gains impact of every crypto-to-fiat or fiat-to-crypto trade. 

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 

![](/files/bLr2mnJvvxS6PkOo6og7)


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.recap.io/us-tax-guide-for-individuals/transaction-types/selling-crypto-for-fiat.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.