itBit Support Center

What is cost basis, and why is it important?

Last Updated: May 06, 2015 05:02PM UTC

Cost basis is generally the dollar amount you paid for your bitcoins. Your choice of cost basis method is very important because it can impact your tax liability when you sell or withdraw your bitcoins. You'll need your cost basis information when you file your income tax return to determine gains and losses on any bitcoins you sell or withdraw from a taxable (non-retirement) account. ​
Click here to learn more about itBit's cost basis methodology.


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