Consider the following example:

Let's take the transaction history of the user above as an example. Pretend that this user only imported his Gemini trading history into CoinLedger and ignored his other data. In this case, CoinLedger will only have data on a 0.5 BTC deposit into the Gemini account along with a sell transaction of BTC for USD at $20,000.

This would trigger a Missing Cost Basis Warning as the user has not shown our platform how he originally acquired that 0.5 BTC.

To CoinLedger, it looks like this 0.5 BTC just magically appeared in the users' Gemini wallet. Without the original purchase transaction data from Coinbase, the user's true $10,000 cost basis in his 0.5 BTC will be missing.

If the user imports all of his data from both Coinbase and Gemini, CoinLedger will be able to see that the user originally purchased this 0.5 BTC for $10,000 prior to selling it on Gemini.​

When the user then sells this BTC on Gemini, CoinLedger will be able to accurately calculate his correct capital gain using the cost basis applied from the original Coinbase purchase: $20,000 - $10,000 = $10,000.

On this step, CoinLedger will highlight any issues with your imported data that are contributing to your missing cost basis.

We will also prompt you to review your Calculated Balance for this asset (shown at the top of your screen) to ensure that it matches what you see in your exchanges and wallets. Double check that your Calculated Balance shown here matches the balance shown in your wallets - if it does not, this likely means that you are missing data and forgot to import a wallet or exchange into CoinLedger.

Additionally, if CoinLedger has highlighted any issues with your imported data you will see a prominent Warning banner appear on Step 1, as shown below.

Click on Step 1 to expand this banner and review the issues CoinLedger identified with your imports. We recommend addressing these issues before continuing on to the next step. These issues may include an account that you have not imported any data for yet, duplicate imports, and more.

For example, on my account CoinLedger flagged that I have not imported my Optimism data yet. To resolve this, I would click Go to Account and then import my Optimism address.

Once you have completed all of the recommendations shown on Step 1, you can move on to Step 2.

On this step, CoinLedger will flag any potential bridge, transfer or trade transactions that were not automatically mapped upon import. Merging these transactions together ensures that your cost basis is represented correctly in CoinLedger.

To merge these transactions together, navigate to the Transactions page and click on the Potential Trades / Bridges / Transfers tab. Then, follow these steps.

CoinLedger will let you know on this step if there are no unmatched trades, bridges or transfers on your account for your selected asset. If that is the case, you can move on to the next step - though we still recommend reviewing your deposits and withdrawals manually to ensure that no bridges or trades were missed.
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On this step, CoinLedger will prompt you to classify your deposits and withdrawals as well as your uncategorized transactions. If you have any uncategorized transactions or deposits and withdrawals to review on your account, they will be highlighted here. Follow along with the steps on your screen to address these issues.

Here are some of the issues you may see highlighted in this step:

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Step 1

Head to the Transactions page of your CoinLedger account. Next, select the Add Transaction button. Then, on the pop-up menu select the Position tab. This is where you will create your Manual Position transaction.

Step 2

First, you'll need to enter the Timestamp of the position (in UTC time) as well as the Source Account (or wallet) where the position was created.

You can select the date and time manually by scrolling to your desired month, day and year or by typing it in directly on the timestamp field. Once you have entered a timestamp and picked the source account for your transaction, click Next.

Step 3

Next, you'll enter the details of the position you are creating. Make sure to fill out each of these fields:

Step 4

Once you have entered each of the necessary fields for your Manual Position transaction, select Save. Your Manual Position will now been created for the asset you selected. You can locate this transaction by filtering for your Manual Positions on the right-hand side of the screen under Transaction Type, as shown below:

You can edit or delete this Manual Position at any time by selecting the three dots next to the transaction and selecting Edit transaction or Delete.

Can I Run My Tax Report With a Missing Cost Basis?

Yes. CoinLedger will still run your tax report in spite of Missing Cost Basis Warnings. In many circumstances, Missing Cost Basis Warnings will not have any significant effect on your gains and losses. Our platform treats this missing data with a zero cost basis—the most conservative approach.

Learn how your Missing Cost Basis Warnings will affect your tax report in this article here.

I’ve uploaded all of my information, why do I still have a missing cost basis warning?

If you’ve uploaded all your information for all years of trading, but still have a missing cost basis, it is possible you have duplicate transactions imported from one of your crypto exchanges. It is also possible that your crypto exchange does not import all of their complete transaction data, and you’ll need to get in touch with our Support Team to identify and get around these limitations. Also, remember to check the total impact of each warning on the Missing Cost Basis Troubleshooting page. Here you can see the potential report impact of each of your warnings. If your warning has an insignificant (or even $0) impact on your potential gains and losses, it can safely be ignored. The IRS allows this.

I have data for the missing cost basis, how do I add it?

The easiest way to import this data is to upload a transaction history CSV file or connect an API key from an exchange we support. If you have a cost basis for one of your flagged transactions that you would like to add manually, you can add this to our software using our Universal Manual Import Template. Be sure to include the date, timestamp, price, and the assets you traded/received in this transaction.

Alternatively, you can manually add a cost basis for an asset by entering a Manual Position into CoinLedger on the Transactions page. You can find details on this process HERE.

I have duplicate transactions, does this matter? How do I get rid of them?

Yes! While CoinLedger automatically detects and filters out most duplicate transactions, some may slip through the cracks depending on the method you are using to import transactions. This can be problematic, since duplicate transactions may lead to missing cost basis warnings and other inaccuracies with your tax report and portfolio tracking calculations. Please see this guide to learn why duplicate transactions occur and how you can remove them from your account.

How can I edit the cost basis of a transaction?

Currently, it is not possible to directly edit the cost basis of a transaction. Editing a transaction or changing its historical price (which is not related to cost basis) will not alter your cost basis and is not recommended.

Instead, to update your cost basis, we recommend either importing your entire crypto transaction history or manually entering your cost basis using CoinLedger’s Manual Position feature.