Cost Basis

Your cost basis in a crypto asset is what you paid for it, including acquisition fees. If you bought 1 BTC for $40,000 and paid a $50 fee, your cost basis is $40,050. When you later sell, trade, or spend that Bitcoin, your taxable gain (or loss) is the sale price minus the cost basis.

Tracking cost basis matters because each purchase creates a separate tax lot with its own basis. U.S. taxpayers can usually choose which lots to sell (FIFO, LIFO, or specific-ID) to manage tax exposure — but you must be consistent and document your method.

Why it matters for Milo customers

Cost basis matters most when you eventually sell crypto. A Milo crypto-backed mortgage or loan lets you tap your crypto's value without a sale — so your original cost basis stays intact and the holding period clock keeps running.

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