Buys and Trades
Your acquisition data is critical to calculating cost basis for a disposal as your acquisition data literally defines what your cost basis is! Crypto can be acquired in four different ways:
- You can buy it using FIAT.
- You can trade one crypto for another.
- You can receive crypto as income.
- You can receive crypto as a gift.
Let’s say that I traded .005 $ETH for 313 $FUN on GATE.io. I then transferred out that 313 $FUN into my Atomic Wallet because I wanted to swap it to $ENJ on Uniswap. I have my Atomic Wallet syncing but notice that my $FUN -> $ENJ trade is missing cost basis. I then would think back and ask myself: “Where did I get that $FUN again?”
Once I remember that it was acquired on GATE.io, I get an export of both my trades and transfers from GATE.io and upload them to my account. That will bring in a $ETH -> $FUN trade, as well as a transfer out of 313 $FUN. With that additional data, my cost basis is resolved!
Another common cause of missing cost basis (MCB) is missing or mis-categorized income data. Staking and mining payouts, promotional rewards, and airdrops are all examples of transactions that should be categorized as Income.
It is common for platforms to display Income transactions as Transfer Ins or to not display them alongside your other deposit/withdrawal history at all. Income transactions are a form of crypto acquisition, so it’s important that they are included in your transaction history and that they are distinguished as Income.
In this example, I received 400 $ONE as an airdrop to my Atomic Wallet. I then immediately sold that $ONE to make a quick buck. When I synced my wallet, that airdrop was brought in as a Transfer In rather than Income.
In this case, all I need to do is edit the transaction type to income and I’m all set!
Keep in mind that some platforms will keep a user’s income history separate from their trade or transfer history, so it’s important to double check all platforms you’ve received income from to make sure your income transactions are being represented in TaxBit.
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!
Disclaimer: Keywords below are added to articles to enhance searching for content within our Help Center.
Missing Acquisition Data
Buys and Trades Missing