Question about calculating gains

Tax
#1

I’m a little bit concerned about how gains and losses are calculated, as I have some very cut and dry examples that seem like they are way off. A good example is 1.6807 Bitcoin that I purchased at $6,060 per BTC (for a total sum of $10,185.04) and was put in a new wallet with no previous transactions, and immediately sold one minute later at $6,187.90 per Bitcoin for a total sum of $10,400. I have added this transaction to “Other Transactions” to isolate it, as there is nothing else in that category. This is very simple and should have a gain of $127.90 per Bitcoin, or a sum of $214.96. All of these numbers match up in Cointracker, but somehow the cost basis for the sold Bitcoin is showing up as $9,309.44, which gives me a +$1,090.56 gain. Please see this photo for proof:

2020-05-14 15_08_48-Transactions _ CoinTracker - Brave
2020-05-14 15_08_48-Transactions _ CoinTracker - Brave1247×562 39.1 KB

I’m concerned that if something this simple is being calculated incorrectly then my remaining 15,000 transactions from 2017-2019 might also have issues. It is very hard to check every single transaction when you have as many as I do. Did I maybe do something wrong in adding of this transaction? Am I missing an important piece of the puzzle when it comes to understanding how Crypto gains are calculated?

Thanks!

#2

Another example with Bitcoin going into an empty Keepkey wallet, and being sold about 25 minutes later directly from said wallet. Cost basis is calculated correctly when buying, but is way off in the sell transaction, leading to an out sized +$2,040.92 gain when I should have only had a +$338.94 gain (not even including the deduction for the fee, which should have made my gain $5.01 lower). Here is a screenshot of that:

2020-05-14 15_24_36-Transactions _ CoinTracker - Brave
2020-05-14 15_24_36-Transactions _ CoinTracker - Brave1033×291 32.5 KB

#3

Hi @LukeBlodgett,

Could you please confirm that you are using last-in first-out (LIFO) accounting — not FIFO — and that you are correctly using universal accounting (vs. per wallet)?

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#4

Hello @Chandan,

Thank you. After playing around with these settings I now understand how to make these changes. Calculations are correct. Will need to figure out which method works best for my capital gains situation. Thanks!

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