CoinTracker calculates the cost basis for NFT transactions using recognized cryptocurrencies like ETH or MATIC. However, in some cases, it may not be able to determine the cost basis or price, triggering a missing price history notification.
What to do if CoinTracker can't determine NFT cost basis
- Timing: Calculate the cost basis and income based on when you received the NFT, not when you update your records.
- Comparability: Consider similar NFTs within the same or similar collections.
- Reliability: One marketplace could be significantly higher than another. Make sure the source you’re using is reliable.
- Availability: Sometimes this information isn’t readily available or hard to find. Use blockchain explorers (eg. Etherscan), NFT marketplaces (like OpenSea, Magic Eden, Blur, or X2Y2), or other sources (like LooksRare) to get the information you need.
Examples: Estimate NFT value and cost basis manually
Scenario 1: John is whitelisted for an NFT launch and receives the NFT for free. At the time, the public mint price was 0.05 ETH — equivalent to $80.
- Using the market approach, John sets his cost basis at $80. If he sells the NFT the next day for $100, he realizes a $20 gain.
- Without the market approach, the cost basis defaults to $0 and selling for $100 results in a $100 gain.
Scenario 2: Jane receives a CryptoPunk without purchasing the NFT. Jane can establish her cost basis by comparing sales of similar CryptoPunks around the time she received it.
Disclaimer: CoinTracker is provided for informational purposes and is not intended as tax, audit, accounting, investment, financial, or legal advice. For financial, tax, or legal advice, please consult your own professional. See our full disclaimer.