Selling Crypto for Fiat
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.
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