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Mackenzie Patel

Mackenzie Patel

Mackenzie is a contributor for Decrypt specializing in crypto tax and accounting. She’s a senior revenue accountant for Figment, a validator on over 50 proof-of-stake networks. She also hosts the book club for she256, a group for women in crypto. Disclosure: She owns less than 1 BTC and fewer than 5 ETH.

Stories by Mackenzie Patel

  • Decentralized finance, or DeFi, is a set of financial services built using smart contracts.

    How to Calculate Cost Basis for Crypto Taxes

    One of the most misunderstood concepts in crypto taxes is cost basis or, simply, what you paid to acquire a crypto asset. It's a very important number because you have to know what it is to know how much you owe in taxes. What is cost basis? According to the Internal Revenue Code Section 1012, “The basis of property shall be the cost of such property,” which also includes the cost of any capital improvements made to the property.  Translated into crypto terms, this means your cost basis for a to...

  • Tax myths exposed. Image: Shutterstock

    7 Common Crypto Tax Myths and How to Avoid Them

    With just over one week until the 2021 tax deadline in the U.S., it’s really time to button up your return and make sure any crypto activity is accurately reported. Even though crypto tax guidance from the IRS is relatively sparse, judging by page one of Form 1040, the agency has its eyes on cryptocurrencies. Therefore, staying in compliance with the standards that do exist will minimize your chances of getting penalized later on. To help you avoid any rookie mistakes, here are some common tax m...

    NewsOpinion
    7 min read
    Mackenzie Patel