Universal and Per-Wallet Pros and Cons

(Note: I’m speaking of US taxation)

Cointracker offers both Universal and Per-Wallet methods of calculating cost-basis. I understand how they both work. What I’m trying to decide is which method to choose, and would like to hear some thoughts on the pros and cons on each.

On one hand. Universal let’s me easily do Specific Identification among all my coins everywhere. On the other hand, per-wallet just seems so easy to visualize, seems cleaner.

Relatedly, I have a question about Coinbase and Coinbase Pro. Are these two considered two separate wallets? If I did Per Wallet, would these two show up in the tax reports as two wallets, or be mixed together? And I wonder if and when Coinbase were to sent out 1099’s, if there would be one for both of them, or two separate ones? That’s probably an important question if I want my 1099s to match up with what I am reporting per wallet.

>> Typically Per-wallet is easier for specific identification and universal is simpler. Unless there is a large difference in taxes, we default to Universal because it is more straightforward. Per-wallet is typically for a small number of power users who are really trying to optimize a very particular tax outcome or crypto OGs who hold hugely appreciated crypto in cold wallets for years

>> They are treated as separate wallets. Don’t worry about matching the 1099s though — those are completely useless for reporting taxes in the crypto space and the IRS knows this.

Can I file taxes one year with Universal cost basis tracking, and the next year with per-wallet cost basis tracking?

If anyone knows anything I would like to know too.