Resolving Missing Cost Basis: Missing Acquisition Data II (Income)

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? Send us an email at support@taxbit.com or chat with us using our live chat feature, and we'd be happy to help!