Hey guys,
Sorry if this was discussed already (it's a nuanced question, so it's hard to search for an answer)...
...is coin control really needed for the ZGL concept? I think from the IRS's perspective, you can use the ZGL concept even if your coins/stocks were fundamentally indistinguishable. For example, you can keep track of tax lots when you sell shares of a company, but it's just an accounting abstraction for tax purposes. The shares themselves are not marked in anyway.
So, more concretely, even if you took all of your unspent outputs in your wallet and combined them into a single unspent output, I think you could still apply the ZGL principle for tax purposes... as long as you kept a table of your cost basis for every coin you purchased. This might simplify the design of such a wallet considerably.
Please forgive me in advance if you guys discussed this ages ago.
Good point. You can use specific lots on book entry shares that are all part of a large pool held by the broker, in fact in some cases for short periods of time the broker may be short shares and "your shares" don't even exist. No matter, as long as you keep track of your trades you can use specific lots.
Using coin control for ZGL seems like overkill. A transaction history by itself might well be enough.
Poll
