crypto - cost basis and fair market value for taxes
Trying to understand the new crypto taxes. Apparently with the new tax reforms, every crypto trade is a taxable event, whether it involves fiat or not. So, to trade alts, one would
1. Buy ETH on gdax - this established cost basis for ETH which is the value of ETH-USD pair on gdax.
2. Transfer eth to binance
3. Trade ETH for ENG - this established selling value of ETH and cost basis for ENG.
Now, if ETH appreciated between buying on gdax and selling on binance, it's considered capital gain and taxable. But how do you determine the selling value of ETH in USD? We can determine price of ETH on gdax since there's a ETH-USD pair, but how would you do it on exchanges with no fiat pairs?
Same quandry for determining the cost basis and fair market value of ENG for the buy and sell events as well.