Incorrect gains/losses totals in your TaxBit account can be explained, and we can help you fix the discrepancy. There are a handful of common reasons those gains/losses may look off.
- Incorrect or incomplete My Transactions data
- Missing cost basis flags
- Missing price flags
- Unexpected accounting method behavior
It’s also important to keep in mind which tax year you're seeing gains and losses for. The dashboard will only show you the default tax year (in the year 2021, the tax year would be 2020). On the My Taxes page, you can view gains and losses for other tax years. For more information on how to use the My Taxes page, you can read through our guide HERE.
You can view flagged transactions by filtering your My Transactions page. If you're unsure how to do that, check out THIS article on filtering transactions. The flags with the largest impact on your gains/losses are “missing cost basis” and “missing price”.
To get those "missing cost basis" flags resolved, check out our series of articles on the topic. The most common solution is to add missing acquisition or transfer data. You can learn what missing cost basis/unknown gains means HERE. To learn how to resolve "missing cost basis" check HERE.
To resolve your “missing price” flags, you’ll generally need to edit those transactions, and enter the market value of that transaction in the transaction details window. Have a look through our guide on resolving missing price flags HERE.
Accounting method selection
The accounting method you select can have a large impact on the gains/losses you see for any given tax year.
TaxBit defaults to the Specific ID - HIFO by Exchange accounting method. Most crypto tax platforms will default to using FIFO, and while you can set your accounting method to FIFO if you want, we recommend leaving it on HIFO By Exchange. For more information on our available accounting methods, have a look through THIS article.
Still have questions? Send us an email at email@example.com or chat with us using our live chat feature, and we'd be happy to help!