In July 2024, the IRS issued Revenue Procedure 2024-28 (Rev. Proc. 2024-28). This procedure makes it mandatory for US crypto investors to use a per-wallet cost-basis tracking method when calculating gains and losses for tax purposes starting January 1, 2025. The universal cost basis tracking method will no longer be allowed beginning in tax year 2025. Learn more about what this means HERE.

To help users comply with these new IRS regulations, CoinLedger will allocate the outstanding cost basis of your holdings to the specific accounts (wallets/exchanges) you hold crypto in. This enables CoinLedger to calculate your gains/losses on a per-wallet basis in the future. This reallocation process will happen automatically on Jan 1, 2025, and no further action is required by you to facilitate this process.

The IRS also recommends that US investors document an inventory snapshot of their crypto holdings once the cost basis reallocation has taken place in order to qualify for Safe Harbor. This snapshot shows currently held crypto assets, outstanding cost basis, and which wallets you hold them in.

CoinLedger provides you with this inventory snapshot, and it can be downloaded via the steps below.

Step 1

Head to your Tax Settings page by selecting the profile picture in the top right corner of your CoinLedger account.

Step 2

Once you've navigated to Tax Settings, scroll down to the IRS Revenue Procedure 2024-28 section, as shown below.

Step 3

Finally, hit Generate Report. You will be provided with an Inventory Snapshot which showcases how the crypto assets you currently hold as well as which wallets you currently hold them in.

Note: This button will become 'clickable' on Jan 1st, 2025 after the cost basis reallocation has officially taken place.

Step 4

Once you have downloaded the Inventory Snapshot, save it for your records.
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