Support for Specific Identification Cost Basis Method for Lots
submitted
Azure Moped
Users Feature Request:
Enhance CoinTracker to support specific identification for cryptocurrency transactions/lots, allowing users to selectively identify which coins/lots are being disposed of in each transaction for tax purposes. This method offers an alternative to the First In, First Out (FIFO) method and can be beneficial for tax optimization. Specific identification requires detailed tracking and reporting capabilities to comply with US tax regulations and potentially other jurisdictions where similar options are permissible.
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Keywords: specific identification, US tax rules, cryptocurrency taxes, FIFO, tax optimization
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Sarah R - CoinTracker
submitted
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CT-RXPgxLVQ
Please add Specific ID capability to your service
Sam - CoinTracker
Merged in a post:
Allow custom assignment of each sale/send to a buy/receive (custom cost basis)
Justinjoylife
Allow me to manually assign each sell/send to each purchase/receive to maximize benefit. This is done by listing all sales/sends and having a dropdown menu next to each send/sale that allows me to pick which buy/receive pool it came from. For example: I just sold .1BTC and I have to choose if I want to pull from my purchase last year or this year or both! Update estimated taxes in realtime. YES THIS IS HARD! But Killer feature! Letme know if you want a mockup.
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CT-5G24RXP4
Offering
some
additional accounting control here is super important, at least in the US where you have to balance tax-loss harvesting (that might favor HIFO) against LTCG rates (which might favor FIFO). In many situations, doing the right thing here can drop your tax burden by half or even 100%. Not having something here is a deal-breaker for people who stand to save 5 or 6 figures by just doing their lot accounting right.SpecID is going all the way, and might be hard. It might require that Cointracker allow batching or clustering of transactions (at least for me, my orders have often been poorly executed with >100 actual transactions per order, and nobody wants to specID 100 individual lots manually).
Programmatic SpecID might be even more useful. Cointracker could offer rules to apply to wallets or portfolio subsets, like "first use assets held >1 yr using HIFO; then use assets held <1 yr using HIFO" to bias towards lower long-term cap gains rates, or "first use <1yr held assets using LIFO until $100k in losses are accumulated, then select from >1yr assets using HIFO" in case you're trying to tax loss harvest offset $100k in short term cap gains.
There are probably other partial solutions here that could give customers a lot of value. I suggest at a minimum, allowing FIFO/HIFO/etc selection on a per-wallet basis.
Eivind
Merged in a post:
Specific Identification Method
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CT-jO3WrBzO
Would like to see the ability to do specific identification easily within CoinTracker. There are times where you want the highest priced tokens identified and others when you want to take LT cap gains.
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CT-YQjLn85O
This is incredibly helpful when sending ETH from my coinspot account to metamask to buy a lower-volume coin. My cost basis is something like $20 even though I spent $500 on ETH and sent that exact amount to my metamask.
I would imagine this would work in parallel to a preset tax approach (e.g. 'FIFO'). The manually assigned transactions would just be treated separately.
You could also put limitations on it to get a V1 up and running quicker. e.g. 1 to 1 transaction assignment, where a sale amount must be less than or equal to the buy amount.
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CT-YQjLeb6O
+1 to this. Without this functionality, the "Tax Loss Harvesting" feature can actually cost users significant money in many scenarios. To tax loss harvest, you may need to choose "HIFO" mode but this would mean any additional sales you make that year that are NOT in loss might be incurring short term cap gains rates instead of long term rates unnecessarily (for those sales, you would ideally match with older, longer-term buys). For the top tax bracket, this will double the taxes you're paying on those sales.
TaxBit allows you to do this. This is an absolute deal-breaker for CoinTracker because it's tens of thousands of dollars in difference in my case and I can't justify just eating that even though I much prefer CoinTracker's slick integrations and UI experience. I'm forced to go use a product I hate (TaxBit) because it has the flexibility I need. CoinTracker needs this flexibility badly and the lack of it makes CoinTracker come across as a tool that targets unsophisticated or ignorant users.
Eivind
Merged in a post:
Support for Specific Identification
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CT-LXdbVJYq
Add support for the Specific Identification method of crypto accounting.
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CT-dQBlV5O6
This is an important money saver for those reestablishing cost basis without triggering a taxable event. Please reach out to me for excellent use case UX/UI examples as E*trade does this really well and I’d be happy to provide workflow reference.
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CT-6QrYYoqm
It seems that CoinTracker already offers this feature from the first link you shared.
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