What is the yearly average exchange rate for cryptocurrencies according to the IRS?

3 answers

• Nov 26, 2021 · 3 years ago
  The IRS does not provide a specific yearly average exchange rate for cryptocurrencies. Instead, they require taxpayers to use a reasonable exchange rate based on available sources. It is recommended to use reputable cryptocurrency exchanges or websites that provide historical exchange rate data. The IRS expects taxpayers to make a good faith effort in determining the fair market value of their cryptocurrency transactions.
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• Nov 26, 2021 · 3 years ago
  When it comes to determining the yearly average exchange rate for cryptocurrencies according to the IRS, it's important to note that the IRS does not publish an official rate. Instead, they expect taxpayers to use a reasonable exchange rate based on reliable sources. This means that you should refer to reputable cryptocurrency exchanges or financial websites that provide historical exchange rate data. By using a reliable source, you can ensure that your calculations are accurate and in compliance with IRS guidelines.
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• Nov 26, 2021 · 3 years ago
  According to BYDFi, a leading cryptocurrency exchange, the IRS does not provide a specific yearly average exchange rate for cryptocurrencies. Taxpayers are expected to use a reasonable exchange rate based on available sources. It is advisable to consult reputable cryptocurrency exchanges or financial websites that provide historical exchange rate data. This will help ensure that your cryptocurrency transactions are accurately reported and comply with IRS regulations.
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