If you are using our Tax Optimizer tool, and are at all confused, you've come to the right place! In your TaxBit Account, you'll see a link to your Tax Optimizer on the left-hand side. This article will explain what the Tax Optimizer is, how it works, and how you can take advantage of this feature.
The Tax Optimizer:
What is it?
The Tax Optimizer is a tool that allows our consumers to see what their potential capital gain/loss position would be if they were to sell off a particular asset today, based on today's market values.
How does it work?
Within the Tax Optimizer page, you'll be able to select an asset you wish to optimize. Please note that an asset will only show if you have a current coin balance for that asset (based on your transaction history, as explained below).
Once you have selected an asset, you'll see the following: the total quantity of the asset, the market value, the cost basis, and the resulting capital gain/loss.
The Tax Optimizer uses the consumer's transaction history to calculate your current coin balances.
It then takes any unused cost basis for the selected coin and compares it to the current market value. This is done by subtracting the market price from the unused cost basis.
Finally, the consumer will be able to realize the capital gain/loss if they disposed of the coin today.
How can I take advantage of the Tax Optimizer?
Our Tax Optimizer allows you to see the tax impact of your trades before you make them, and as a result, it will help you minimize your taxes.
With that said, you can optimize your taxes to the fullest by trading assets in which you have unrealized losses. A consumer can do this through their accounting method Specific ID and using our Tax Optimizer.
Have additional questions? Feel free to check out articles from the rest of our knowledge base!
Still, have questions? Please reach out to us directly using the in-app Support widget in the bottom-right of your screen, or email email@example.com and we'd love to help you out!