Fair market value (FMV) is the price that an asset would have traded for on the open market at a specific point in time. In Lukka, FMV is the price at which a crypto asset is marked if a trade (or transfer) does not have a USD side or if the price of an asset at a specific time is not documented, known, or otherwise noted.
Indexes and averages (VWAP or others) are generally not considered a measure of FMV. When valuing crypto assets for tax purposes, the IRS suggests using specific exchange executed prices.
Lukka applies Lukka Prime - a pricing methodology aligned to GAAP and IFRS guidelines (global accounting standards). For more information click here.
NOTE: Lukka does not provide tax advice. The statements above are general in nature and do not address how the application of the tax rules can vary based on a taxpayer’s actual facts. Please consult a tax professional on how the tax rules apply to your specific facts.