TaxBit has created a tool to help users resolve certain missing cost basis issues. The initial launch of our Resolution Center will help identify and walk you through the following scenarios:
- Integration Issues
- Duplicate Transactions
- Linking Transfer In Transactions With a Matching Transfer Out
- Transfer In Transactions Without a Transfer Out
- Unknown Assets and Prices
This article will focus on walking you through how to resolve Transfer In Transactions Without a Transfer Out.
Transfer In Transactions Without Transfer Outs: Multiple transaction types are being accounted for within your TaxBit account. The goal is to track your cost basis for your transactions throughout any movement within your account or across other integrations. There are some situations where a Transfer In comes in before a Transfer Out or other scenarios where your transfers are not linked. If you have a Transfer In transaction that doesn’t have a matching Transfer Out transaction, the system can’t track the cost basis of when that asset was acquired. In order to complete your full transaction history for your asset, it’s important to have where your Transfer In transaction came from. Without that information accounted for in your account, you’ll see missing cost basis flags within your account.
Please Note: If you already have a Transfer Out transaction accounted for but the transaction is still showing in the Resolution Center: try to run a recalculation on the account, or have the user delete and re-add the transfer out in their account.
Example: You’re transacting in your Binance.US account. You transferred BTC out of one of your other exchanges and transferred it into Binance.US. You then continue to transact with that transferred in BTC. In your TaxBit account, our system will recognize that there was a Transfer In of BTC into Binance.US. Any transactions using that BTC to follow will have missing cost basis until the information as to where you transferred the BTC out of is accounted for to properly track the cost basis.
How do I work through Transfer In transactions that don’t have Transfer Out transactions?
First you'll want to access the Resolution Center, you'll login to your account and navigate over to the left side to select "Resolution Center"
From there, the system will identify if there are transaction issues in your account that can be resolved through the Resolution Center. This example shows multiple Transfer Ins without matching Transfer Outs in Exodus, you'll want to work through the list from top to bottom.
If you choose to work through the issue that has been identified, you'll click the "Resolve" button.
From there, a screen will appear where you can review and work through resolving the transactions:
When you first begin working through identified issues in the Resolution Center, it gives you the option to review the transactions in question.
If you choose to review the transaction select "Review" on the right side. This will then take you to your Transactions page with the necessary filters already applied, so you can easily take a look at which transaction is in question. Looking at the transaction may help you remember where that Transfer In was transferred out from.
After reviewing the transaction in question on the Transactions page, you can work through resolving the issue based on the suggestions presented in the Resolution Center.
For resolving a Transfer In Transaction Without a Transfer Out, you are presented with three options: Connect Wallet, Set Cost Basis, or Change Transaction Type.
Connect Wallet: This option is available if you recall the matching Transfer Out transaction came from an integration that hasn’t been connected to your TaxBit account. It’s important to connect everything to your TaxBit account to ensure the most accuracy within your account. If this is the option you decide is the best fit, you’ll select “Resolve”. From there, it’ll take you to connect the missing integration.
Set Cost Basis: There is a chance that the transaction missing came from a source that is unsupported. In this case, you won’t be able to resolve the issue by accounting for the missing transactions within your TaxBit account. Setting your cost basis allows you the ability to manually set the cost basis for the transaction in question. If this is the best way for you to resolve the issue, you can select “Resolve”.
After you hit resolve, it’ll direct you to a pop up where you’ll enter in the Cost Basis for the transaction. Once you hit “Save” this will change the transaction type to a “Buy” rather than a “Transfer In”.
Example: You realize that the source of the missing Transfer Out was Bitrue. You wouldn’t be able to account for those transactions since Bitrue is an Unsupported Source. In this scenario, to establish cost basis you’d need to manually do so through this resolution process.
Change Transaction Type: This option provides you the ability to change the transaction type. For example, if you realized that the Transfer In transaction was actually an Income transaction, this would be the option you’d want to go with. To go with this option, you’ll hit “Resolve”.
Next, you’ll select from the dropdown which Transaction Type the Transfer In is supposed to be. You want to make sure that you save the changes that you made.
Once you've completed resolving your Transfer In Transactions without a Transfer Out issue in the Resolution Center, you can continue working on any other remaining issues that have been identified. The goal is to work through any issues until you no longer have identified issues in the Resolution Center.
Please Note: You'll see a screen with this message if you still have Missing Cost Basis within your account. This message is due to the transactions with Missing Cost Basis not being able to be resolved through the Resolution Center at this time. Right now, the Resolution Center helps users with working through four scenarios: Possible Duplicates, Integration Issues, Linking Transfer Ins with Transfer Outs, and Transfer In Transactions Without a Transfer Out. There are more to come soon!
Still have questions? You can interact with our Chatbot by selecting the Chat Widget located at the bottom right side of your screen, or fill out this form HERE to submit a support inquiry request. Our team is happy to help!
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Missing Cost Basis