CoinTracker's Ultra and Ultra+ plans have a feature that allows users to update the cost basis method for each tax year. This customization is particularly beneficial for customers who want to adjust their tax reporting methods for current or future years without affecting previous calculations.
For instance, if you've previously used the Highest-in, First-out (HIFO) method, but now wish to explore the implications of the First-in, First-out (FIFO) method for the current tax year, this feature enables such adjustments seamlessly.
Understand the implications of updating the cost basis method
Before making any changes, it's crucial to understand the tax implications of altering your cost basis method. Consulting with a tax professional can provide clarity and ensure that your choices align with your tax obligations and goals.
Steps to update the cost basis method
- Sign in to CoinTracker and navigate to Settings.
- Go to the Taxes page.
- Click the Cost basis method.
- Click the cost basis method next to the year you wish to change.
- Choose a different method from the drop-down menu.
- After selecting a new method, confirm your choice and click Save settings.
Repeat the steps for each specific year you want to update. Keep in mind that CoinTracker defaults to HIFO. Read more about cost basis methods.
Disclaimer: Note that the following should not be construed as legal, tax, audit, accounting, or brokerage advice and that any and all information is provided for informational purposes only.