How to Calculate Crypto Profit / Loss

bfgun

Hopefully this is the right forum for my question.

I'm trying to establish how to calculate profit and loss on crypto, but it could equally apply to shares.

For example, if 10,000 tokens are purchased at varying prices, and then sold, should I calculate the profit or loss based on the total purchase cost regardless of whether the majority of the purchase was made at a lower price?

Thanks for your help.

wmb194

bfgun said:

Hopefully this is the right forum for my question.

I'm trying to establish how to calculate profit and loss on crypto, but it could equally apply to shares.

For example, if 10,000 tokens are purchased at varying prices, and then sold, should I calculate the profit or loss based on the total purchase cost regardless of whether the majority of the purchase was made at a lower price?

Thanks for your help.

Yes, it’s a section 104 holding.

https://www.gov.uk/government/publications/shares-and-capital-gains-tax-hs284-self-assessment-helpsheet/hs284-shares-and-capital-gains-tax-2021

masonic

Assuming you have just been buying up to now, you should calculate your average acquisition cost of each type of coin. That is what you should then use to calculate your gain when selling. If you buy more later, then you will need to recalculate your average. If you repurchase within 30 days, then beware of bed and breakfast rules.

bfgun

@wmb194 @masonic

Thank you for your replies.