What to do with Cryptocurrency - Tax Implications
With Cryptocurrencies, in order to figure your gain or loss, you’ll have to show your basis in the currency. Basis is usually how much you paid for the currency. If you received the currency as payment for goods or services, your basis is generally the fair market value of the currency when you received it. This is probably also the case if the currency was a gift or inheritance. Your gain or loss is the difference between your basis and the fair market value of the currency