Definition ∞ Gross Proceeds represent the total amount of money received from the sale of an asset or from a transaction, before any deductions for costs, expenses, or taxes. This figure reflects the full revenue generated from a sale. It is a fundamental component in financial calculations.
Context ∞ In the context of digital asset transactions, gross proceeds are a crucial figure for tax reporting purposes. Investors must accurately report the full amount received from selling cryptocurrencies or other digital tokens before subtracting their initial cost basis or any associated trading fees. This value forms the starting point for calculating capital gains or losses, which tax authorities use to determine an individual’s or entity’s tax liability.
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