Cost Basis Tool

This tutorial will guide you through the process of using the cost basis tool on the Blox platform. Only Business , Enterprise and Custom Plan users have access to this feature.

Please use the instructions in the guide below, or contact Blox for support.

Section 1.1 - Getting Started

What is the Cost Basis calculation tool?

The cost basis tool from Blox allows users to easily calculate their Gain and Loss with accounts synced on the Blox platform.

How does it work?

Today’s crypto finance teams, accountants and tax professionals are responsible for calculating the Cost Basis for their businesses, personal taxes or for their clients. The traditional approach requires a lot of manual data entry and can be time consuming and many are looking for automated solutions.

For every crypto transaction that triggers a taxable event, Blox has automated and delivered the most accurate and effective cost basis calculation tool.

Let’s get started!

  • When selecting transactions you wish to calculate, they can be organized into 4 separate tabs:
    • To-Review: In this tab, users will see all new transactions and transactions that are yet to be sorted into other tabs. For existing users, Blox will automatically bring in your entire transaction history into this tab.
      • Ultimately, this tab should eventually be void of any transactions. Instead, they should be filtered into their respective tabs.
    • To-Calculate: All transactions in this tab will be included for Cost Basis calculations. Only transactions sorted into this tab (from any other tab), will be included in the final calculation section.
    • Exclude: In this tab, any transaction users wish to exclude from calculation will be sorted into this tab. All transactions in this tab will not be calculated in the cost basis calculation section.
    • All: In this tab, Blox will list all of your transactions, no matter which tab they have been placed into. Please note, users can’t move transactions from this tab.
  • It is important to ensure that you have carefully organized your transactions into their respective categories. This is based on each individual user and which transactions they wish to review, exclude or calculate.

(Image Above: Shows view of 3 separate tabs and the “All” tab)

How to Navigate:

  • Users will be able to move transactions between any of the 3 tabs at any time. They may do so one-by-one (up to 10), or by bulk selection of 5,000..
    • By default, all transactions are automatically located in the “All” tab.
  • You can select one, or multiple transactions when sorting transactions.

(Image Above: Shows ability to move multiple transactions into any other tab)

  • Before calculating, the Blox platform enters a preparation stage to measure deviations.
    • This works by calculating the unit balance in the system against the unit balance in the To-Calculate tab. In the section below [1.2] we will guide you through how deviations function on Blox.
  • When ready to proceed to calculate and all relevant transactions are placed in the “To-Calculate” tab, please click the “Calculate” button to begin the preparation stage. See image below.

(Image Above: Shows “Calculate” button in the “To-Calculate” tab)

Section 1.2 - Understanding Cost Basis & Deviations

In order to provide accurate and effective results, the cost basis tool will only continue its calculation of transactions when the result is within a 3% deviation.

For more details and to learn more about cases where a deviation is greater than 3% please read our guide, How To Complete Missing Data.

Deviations are organized into three categories: From within the “To-Calculate” tab

1) If a deviation is more than 3% Blox will not calculate the Cost Basis and Gain/Loss and the user will be notified.

  • Please note, you can correct deviations by:
    • Review to see if missing transaction have been misplaced into other tabs.
    • If you have not resolved your issue, please contact Blox support.

2) If a deviation is up to 3%, we will calculate the Cost Basis and Gain/Loss of all the transactions (per portfolio/per token). That is based on if the platform detects enough data to start the calculation. Regardless of the result, the user will be notified.

  • Please note, these types of deviations are common and can be caused by gas fees, airdrops and other factors.

3) If there is no deviation, the calculation will start automatically. The user will then be notified when the calculation is completed and prompted with a report.

Section 1.3 - Results & Reporting

At this point in the guide, you will have already prepared to begin calculating and seeing your final Gains/Loss results. Now that you understand how we calculate, we wanted to continue to guide you through the final results and reporting stages.

(Image Above: Shows Cost Basis calculation summary)

  • The Cost Basis Report window will appear with a summary of the calculations and if any deviations occurred during processing.
    • Calculations can process, even if others have been stopped due to a deviation above 3%.
    • This summary report always notifies users of the calculation status the status and keeps them informed them throughout the process.
  • When the calculation has completed, the user will get a summary report indicating the status and result of the calculations.
    • The picture below displays a ‘glance’ view of the final cost basis calculation result and can be clicked to show more specific details.

(Image Above: Shows detailed information of calculated transactions)

  • Users can also click on the arrow icons to reveal more details about a particular cost basis calculation.

(Images Above: Show more details look at the cost basis results broken down by date, unit price, cost basis result)

When a (+/-) icon appears, it identifies the calculated transactions from the non-calculated transactions in the transaction table. Users can also filter search by calculated or uncalculated transactions when needed.

Please note: Cost Basis & Gain/Loss is available for Premium clients only.

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