Crypto Cost-Basis Gaps Complicate IRS Tax Reporting
Exchange reporting is creating tax complications for some crypto investors when the IRS receives gains data without the cost basis needed to assess profits.
Some cryptocurrency investors are facing tax-reporting difficulties as exchanges send information about their crypto gains to the US Internal Revenue Service, according to Cointelegraph.
The problem centers on missing cost-basis information, which generally reflects what an investor paid to acquire an asset. That figure is needed to calculate a gain or loss when the asset is sold.
Without those acquisition details, the information available to the IRS may not provide a complete picture of an investor’s taxable results, complicating the process of reconciling exchange reports with tax records.
Source: Cointelegraph
