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 or manually added 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 referring to transactions, they can be organized into 3 separate tabs:
- To-Calculate: All transactions in this tab will be included for Cost Basis calculations. Only transactions sorted into this tab will be included in the final calculation section.
- Exclude: Any transaction users wish to exclude from calculation will be sorted into this tab. In addition, transfers will be automatically placed in 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 2 separate tabs and the “All” tab)
HOW TO NAVIGATE:
- Users will be able to move transactions between any of the 2 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 “To-calculate” tab.
- You can select one, or multiple transactions when sorting transactions.
((Image Above: Shows ability to move multiple transactions into any other tab)
- When ready to proceed to calculate, please click the “Calculate” button to begin the preparation stage. See the image below.
(Image Above: Shows “Calculate” button in the “To-Calculate” tab)
Once the Calculate button is clicked users will be prompted by an alert that explains the methodology we use to calculate Cost Basis and Gain/Loss. We will also inform the user of how many transactions were placed in the ‘Exclude’ tab.
Section 1.2 - Understanding Cost Basis & Deviations
In order to provide accurate and effective results, the cost basis tool will 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:
1) If a deviation is more than 3% Blox will not calculate the Cost Basis and Gain/Loss unless the user chooses to proceed anyway, and the user will be notified.
- Please note, you can correct deviations by:
- Review to see if a missing transaction has been misplaced into the ‘Exclude’ tab.
- If you have not resolved your issue, please contact Blox support.
2) If the immaterial deviation is below 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 by 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.
- Note that for deviations above 3% users can choose to proceed anyway. This will allow you to calculate transactions without any deviation safeguard.
*Please note, the calculation may not be accurate as the system may lack the transaction data.
(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.
Please note: Cost Basis & Gain/Loss is available for Premium clients only.