Yes. CoinLedger needs both your taxable and non-taxable transactions to accurately generate your tax reports and track your crypto portfolio. This includes your self-custody wallets and any wallet-to-wallet transfers between them.
Taxable transactions include selling your crypto for fiat, trading one crypto asset for another, or minting an NFT. Non-taxable transactions include transferring your crypto from one wallet you own to another wallet you own (this is often called a self transfer). However, CoinLedger needs your non-taxable self transfers as well as your taxable crypto transactions in order to accurately calculate your taxes.
Here is why:
In July 2024, the IRS made it mandatory for all US crypto investors to use a per-wallet cost basis tracking method (learn more here). Previously, taxpayers were allowed to “combine” the cost basis for their coins across multiple wallets into one universal pool. Starting in the 2025 tax year, though, you are now required to track each wallet’s cost basis separately.
For example: let's say you sold Bitcoin in multiple wallets in 2025. When you are calculating your gains and losses from these transactions, you can only use the cost basis from the individual wallet where each sale occurred. If you sold BTC on Coinbase, you can't draw your cost basis from a universal pool - you must use the cost basis of BTC from Coinbase only.
Moving forward, self transfers become even more important when calculating your crypto taxes because they allow CoinLedger to accurately track your cost basis for an asset. Missing even one self transfer transaction can impact the accuracy of your tax reports significantly.
That is why CoinLedger needs all of your historical data to do your taxes and track your portfolio - including your taxable and non-taxable transactions.
Have any more questions? Our team is always happy to help. Feel free to reach out at any time!