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Calculating average price


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17 hours ago, BigAggie said:

how much you spent in total divided by how many zerps you now own

in theory yes, but in the united states we may need to account for the trade between BTC to XRP as well. 

they are talking about each trade being taxable, even if it's coin to coin, rather than fiat to coin or coin to fiat. 

so if you buy BTC on CB, transfer it to binance, then the price of BTC when you transfer that to xrp is a taxable event.

Then when you sell your xrp it's a taxable event again. 

it's a bit complicated and convoluted. I'm hoping they clean it up some. 

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Ouch, that is not nice...

Here in our county until now we have no tax on profit from crypto trading.
Only mining is taxable.
But I believe this will also change soon. I just hope XRP reaches my goal, so I can sell some part under good tax conditions. :)

 

 

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1 hour ago, RegalChicken said:

in theory yes, but in the united states we may need to account for the trade between BTC to XRP as well. 

they are talking about each trade being taxable, even if it's coin to coin, rather than fiat to coin or coin to fiat. 

so if you buy BTC on CB, transfer it to binance, then the price of BTC when you transfer that to xrp is a taxable event.

Then when you sell your xrp it's a taxable event again. 

it's a bit complicated and convoluted. I'm hoping they clean it up some. 

Isn’t the capital gain on the btc between the time and purchase and the time of the trade the only thing that is taxed? In other words, the trade is a taxable event because in essence you are cashing out your BTC for XRP? If you purchase BYV and trade it right away for XRP, the event is taxable but in essence there is not tax to pay because there is almost certainly no capital gain? Now, if you bought btc and waiting 6 months to trade it, the price has likely changed and you would have to deal with the tax implications of a capital gain or loss. Right?

Edited by ringer2
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20 minutes ago, ringer2 said:

Isn’t the capital gain on the btc between the time and purchase and the time of the trade the only thing that is taxed? In other words, the trade is a taxable event because in essence you are cashing out your BTC for XRP? If you purchase BYV and trade it right away for XRP, the event is taxable but in essence there is not tax to pay because there is almost certainly no capital gain? Now, if you bought btc and waiting 6 months to trade it, the price has likely changed and you would have to deal with the tax implications of a capital gain or loss. Right?

this is the frustrating part. the exchanges are rarely the same price.

so lets say today I do this:

buy 1 btc at $6700 on cb. send it to bittrex to buy xrp with it. on bittrex it's $6775. I now have a $75 profit to report.

buy XRP at 7200 satoshis. hold on to it for a year. sell it back into BTC for 25,000 satoshies, I now have a profit to report, most likely. 

transfer the BTC back to Coinbase, sell it for fiat > another profit or loss to report. 

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25 minutes ago, RegalChicken said:

this is the frustrating part. the exchanges are rarely the same price.

so lets say today I do this:

buy 1 btc at $6700 on cb. send it to bittrex to buy xrp with it. on bittrex it's $6775. I now have a $75 profit to report.

buy XRP at 7200 satoshis. hold on to it for a year. sell it back into BTC for 25,000 satoshies, I now have a profit to report, most likely. 

transfer the BTC back to Coinbase, sell it for fiat > another profit or loss to report. 

 The likelihood of anybody, even those who sincerely try, Getting this right is about 5%. 

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21 hours ago, llckll said:

Hi,

A couple months ago, I deposited money into CB, purchased BTC, sent to Binance, bought some XRP, moved Binance to Bitstamp with remaining BTC and XRP and dca the next few days. . 

How would I calculate my average buy price in USD?

Let's say that you own 500 shares of Microsoft, and you acquired your shares in three separate transactions. You bought the following number of shares at each of the following price points.

150 shares at $100

250 shares at $200

100 shares at $300

In order to calculate your weighted average price per share, simply multiply each purchase price by the amount of shares purchased at that price, add them together, and then divide by the total number of shares. 

image.png.0fee5b051e28b219848515e5b6046d9e.png

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4 hours ago, MegaNerd said:

Let's say that you own 500 shares of Microsoft, and you acquired your shares in three separate transactions. You bought the following number of shares at each of the following price points.

150 shares at $100

250 shares at $200

100 shares at $300

In order to calculate your weighted average price per share, simply multiply each purchase price by the amount of shares purchased at that price, add them together, and then divide by the total number of shares. 

image.png.0fee5b051e28b219848515e5b6046d9e.png

There's really no benefit in using weighted average price unless it's a business that wants to smooth out inventory expenses. 

For what the OP is looking for they would be better suited with a simple average price calc of $ spent/XRP owned. 

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9 hours ago, RegalChicken said:

in theory yes, but in the united states we may need to account for the trade between BTC to XRP as well. 

they are talking about each trade being taxable, even if it's coin to coin, rather than fiat to coin or coin to fiat. 

so if you buy BTC on CB, transfer it to binance, then the price of BTC when you transfer that to xrp is a taxable event.

Then when you sell your xrp it's a taxable event again. 

it's a bit complicated and convoluted. I'm hoping they clean it up some. 

Yes, that’s true. But every time I do this I come out at a loss because of fees. Maybe I can claim it as a loss every time I buy :biggrin:

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12 hours ago, RegalChicken said:

in theory yes, but in the united states we may need to account for the trade between BTC to XRP as well. 

they are talking about each trade being taxable, even if it's coin to coin, rather than fiat to coin or coin to fiat. 

so if you buy BTC on CB, transfer it to binance, then the price of BTC when you transfer that to xrp is a taxable event.

Then when you sell your xrp it's a taxable event again. 

it's a bit complicated and convoluted. I'm hoping they clean it up some. 

If you genuinely need to account for BTC to XRP, then at each stage it needs to be converted into Dollars, using the respective BTC/USD and XRP rates - some fun could be has here as you are not actually making USD paired trades, and I’d suggest you may therefore have some liberty to assume the worst rate on the exchanges available to you, thereby reducing the recognised profit or increasing any loss to be offset elsewhere.

But ultimately it does come down to number of XRP divided by Dollar input cost.

Edited by Mikhail_Liebenstein
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On 09/04/2018 at 2:20 AM, llckll said:

Hi,

A couple months ago, I deposited money into CB, purchased BTC, sent to Binance, bought some XRP, moved Binance to Bitstamp with remaining BTC and XRP and dca the next few days. . 

How would I calculate my average buy price in USD?

You divide the  invested $ amount by your XRP count !

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This taxable event issue in the USA is the main reason I want more XRP/USD direct purchases to be available on exchanges. I went with Uphold because they have a XRP/USD pair and so there's no tax event for XRP/USD until you cash out. And no BS about buying BTC (or whatever) then Shapeshifting it to XRP. The data you have to keep in that case is *way* too much trouble.

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