While you're working on getting all of your data into your TaxBit account, you may come across an "Unknown Gains" message, or a small yellow "i" next to some transactions. This article will explain what that means, and how to resolve it (spoiler, it means you have missing cost basis).
(What is cost basis? Here's our "What is Cost Basis" article to explain!)
When you dispose of an asset/cryptocurrency (selling your asset or trading it for another asset), TaxBit will look for a transaction in your history that can be used to establish cost basis.
If the cost basis is unavailable, then the gains or losses that need to be reported to the IRS cannot be correctly reported on your tax forms.
Included in this article you will find:
- How to know if you are missing cost basis
- Resolving missing cost basis
- Identifying Missing Cost Basis
- What is Cost Basis? (Coming Soon)
- Which Transactions Do I Need In My TaxBit Account?
How do I know if I am missing Cost Basis?
Whenever a transaction is missing cost basis, it will be displayed in your account with a small yellow i symbol:
All cost basis missing -
When you see Unknown Gains this means that based on your current cost basis pool (the available assets that have not been disposed of already from transactions where you obtained an asset) we do not know how much any of the disposed asset was purchased for. If you generate your tax forms with unknown gains transactions still in your TaxBit account, these transactions will not be included on your form 8949.
Partial cost basis missing -
If you see the i symbol next to a gain or a loss, then it means we are missing some of the cost basis. This means that your cost basis pool provides enough data to identify how much you paid for a portion of the asset that was disposed of, but not the entirety of it. If you generate your tax forms with a partial cost basis transaction, then your form will reflect the partial cost basis as the entirety of the cost basis. This can create the appearance of larger gains, or smaller losses than what actually happened.
Resolving Missing Cost basis -
In order to resolve missing cost basis, we will need to locate the transaction where the asset was obtained, and record that in your TaxBit account. Once the cost basis is added into your TaxBit account, your gains and losses will be recalculated to reflect this. The yellow i symbol will no longer appear next to the transaction once the entirety of the cost basis has been made available in your transaction history.
Identifying Missing Cost Basis -
If you would like to determine exactly how much of a particular transaction’s cost basis is missing, you can do so by clicking on the transaction, and using the + sign to expand the cost basis history.
- This is a summary of the transaction, you can see exactly what was sent (on the left), and what was received (on the right).
- This is the total value of what was sent, at the moment the transaction took place
- This section summarizes what assets have an established cost basis. You can see the amount of the asset obtained, and the value of it at the moment it was obtained.
- This section shows what assets are missing their cost basis.