How to Run a Cost Basis Calculation in Cryptoworth
Step-by-Step Guide to Running a Cost Basis Calculation
A cost basis calculation is essential for determining financial data such as proceeds, capital gains or losses, and fees for your crypto transactions. Here’s how to run this calculation in Cryptoworth.
1. Access the Transactions Page
Navigate to the Transactions page from the sidebar menu.
This page consolidates all your transaction data from wallets, exchanges, and APIs.
2. Understand the Need for a Cost Basis Calculation
When you sync your connections, only basic data like token amounts is initially visible. A cost basis calculation is needed to populate financial data, including:
Proceeds
Capital Gains or Losses
Cost Basis
3. Configure Calculation Settings
Click the Calculate button in the top-right corner of the Transactions page.
To view or modify settings, click the Configuration Wheel next to the Calculate button.
Adjust the following options as needed:
Accounting Methodology:Choose a method such as FIFO (First In, First Out).
Connection-Level Calculation:For jurisdictions requiring connection-level calculations, enable this option.
Audit Logs:Enable to view detailed inventory lots used for each transaction disposition.
Additional Features:Options like Calculate Tax Lots or Recalculate Dispositions can be enabled for more specific scenarios.
4. Filter Your Transactions
The calculation applies to the filtered transactions. Adjust your filters as needed:
End Date:Specify an end date, such as December 31, 2024, for financial reporting.
Assets:Filter by a specific asset (e.g., Ethereum) to calculate data only for that asset.
5. Run the Calculation
After setting your filters, click Calculate.
Cryptoworth will process the filtered transactions.
Example: "677 transactions as of December 31, 2024."
6. Monitor the Calculation Progress
Go to the Reports Dashboard to view a pending calculation notification.
Once completed, review your financial data, including:
Cost Basis
Proceeds
Capital Gains or Losses
7. Review Detailed Data
Post-calculation, additional data is available:
Unrealized and Realized Gains/Losses:Analyze gains or losses for the period.
Internal Fees:Includes network or gas fees.
External Fees:Includes exchange maker/taker fees.
What’s Next?
With your cost basis calculation complete, your financial data is ready for reporting and syncing with your main ledger. The next tutorial will guide you through setting up automation rules for even greater efficiency.