What do I do if I have missing cost basis?
Cost basis is the initial cost that you acquired an asset for, and it is used to calculate your gains or losses when you later trade or sell an asset. It’s important to know the cost basis for all crypto in order to accurately calculate your tax liability as well as to minimize your tax liability or harvest your losses.
Missing cost basis is fixed by confirming the integrity of the data that you have uploaded to TokenTax. Read below to find out what's wrong or what data you may be missing.
If you need to upload more data to TokenTax, you can use our upload template.
Did you upload all transactions, even from past years?
Acquisitions from past years still matter for cost basis. If you bought bitcoin in 2015 and sold it this past tax year, you’ll need the cost basis. Be sure to check your transactions on all exchanges you’ve used in the past. TokenTax will report what’s needed in accordance with the accounting method used.
Have you reported all transactions that happened off an exchange, like trades with friends or family, or over-the-counter trades?
Even if you bought crypto outside of an exchange, you need to report the purchase to account for cost basis. Special tax provisions apply for crypto given or received as a gift.
Do you have duplicates?
Duplicate entries can lead to missing cost basis and an overall inaccurate tax report. You might have duplicate entries if you synced an API and uploaded a CSV from the same exchange, or if multiple CSVs from the same exchange overlap. To check for duplicates, go to the All Transactions tab and try sorting by buy quantity, sell quantity, and/or date. If you find many duplicates, we recommend deleting all transactions from the exchange and re-uploading so you can start from a clean slate.
Have you received crypto from airdrops?
Because airdrops are free distributions of crypto, any crypto gained in this manner has a cost basis of $0 — but it must still be reported to TokenTax to prevent missing cost basis errors.
Have you received crypto from a hard fork?
In the event of a hard fork, a prominent example being Bitcoin Cash (BCH) forking off of Bitcoin, you are liable for tax on the new asset. For example, if you sold 1 BCH for $266 shortly after the fork, you are liable.
There’s two ways to apply cost basis to a new forked cryptoasset. You can set the cost basis as $0 and calculate the fork price as short term gain, which is taxed the same as ordinary income. This is what we do.
You can also take the new asset’s market value of the time of the fork as the cost basis, and claim income on your acquisition of the asset. If you choose this route, let us know and we’ll manually edit your cost basis.
Have you participated in any pre-sales or ICOs?
Assets acquired through a presale or ICO may have fallen under your radar when uploading to TokenTax. Remember to include these.
I found my missing data — now what?
You can upload the data with our manual upload template.
TokenTax does the work so you don’t have to.
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