@crypto.cpa: Under federal tax law (IRC Section 1012), cost basis is the foundational starting point for calculating all digital asset tax liabilities. Cost basis represents the original acquisition cost of your cryptocurrency in U.S. dollars including gas fees and transaction expenses. Whenever you sell, trade, swap, or spend your crypto, your taxable capital gain or loss is determined by subtracting this IRC Section 1012 cost basis from your gross proceeds. With brokers transmitting sales data directly via Form 1099-DA, failing to track or establish your exact acquisition cost basis causes the IRS to default your basis to $0, taxing your entire transaction proceeds. Maintaining an accurate, verified cost basis ledger under Section 1012 is your primary defense against overpaying on crypto taxes. Contact our crypto tax and accounting team today to secure a clean, professional data reconciliation! Email: [email protected] Phone: (713) 451-9700 #Crypto #Tax #1099DA #CapitalGains #DataReconciliation #Accounting #CryptoCPA

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