We will periodically upgrade this page with frequently asked questions about our 2023 upgrades to our Accounting Engine.
What is the CoinTracker Accounting Engine?
After we pull your transactions into CoinTracker, our product processes them to help you with your tax calculations. This happens through our Accounting Engine, which works through every transaction one-by-one to understand your cost basis, capital gains/losses, and taxable income.
What upgrades are part of the new 2023 Accounting Engine release?
Crypto tax rules can be ambiguous, and they evolve quickly. At CoinTracker, we work hard to help you navigate these rapid changes by continuously reviewing regulations and feedback from partners and users. These will help you calculate your crypto taxes with even greater accuracy, in alignment with IRS guidelines.
The main improvements in the new release include:
[US only] Migrating users from the “universal” cost basis tracking method to the “by wallet” cost basis tracking method. The Infrastructure Bill (Sec. 80603) requires that crypto exchanges start issuing the 1099-DA tax form for crypto gains and losses as soon as January 1, 2024. The “by wallet” tracking method will ensure that CoinTracker tax reports are consistent with reports provided by crypto exchanges.
- Incorporating tax implications of fees paid on exchanges and blockchains. Transaction fees can reduce your tax liability by increasing your cost basis and lowering your capital gains. CoinTracker integrations identify these fees, and our upgraded accounting engine incorporates them in all your tax calculations.
- Introducing a transaction balancing feature for data inconsistencies. CoinTracker sources data for thousands of volatile assets across the crypto ecosystem. When detecting inconsistencies in transaction data, CoinTracker’s new balancing feature will provide you with data to help calculate your [crypto taxes] as accurately as possible, per regulatory guidance.
With these upgrades, we also addressed feedback from users like you, including:
- Include transaction fees in cost basis
- ETH gas fees not being incorporated into cost basis / capital gains
Are these upgrades automatically applied to my account?
Yes. For users in the US and select users in Canada, these upgrades will automatically apply to all current and future transactions added to CoinTracker. We will launch these upgrades for remaining users in Canada and other supported countries soon, in alignment with region-specific regulations.
What is a cost basis tracking method and why did this change?
You can learn more about cost basis tracking methods and recent changes here.
What are the tax implications of transaction fees?
You can learn more about how transaction fees affect your crypto taxes here.
What does the new transaction balancing feature do?
You can learn more about our new transaction balancing feature and examples here.
What should I do if I have transactions that need review?
You can learn more about why some transactions need review and how to resolve these errors here.
How can I compare these new calculations with previous calculations?
You can learn more about how to compare these new calculations with previous tax forms here.
I want to speak to someone at CoinTracker directly about my situation. Who can I contact?
You may email CoinTracker customer support at firstname.lastname@example.org or visit our website to submit a request.