Need some information on Cost Basis

[delta99]

Hello,

I just wanted some clarity on calculating my actual cost basis after factoring in realized gains.

This is what shows up on say one on those crypto tax apps

Cost Basis - 50k
Total Value - 40k
Unrealized gain - -10k
Total Coins - 2

Cost - 25k per coin.

Now say for the past 2 years I did some trading and have a realized gain a total of 20k and I did pay tax on 15k already and will be required to pay tax on 5k this year.

Does my true cost basis for personal tracking becomes 50k - 20k = 30k / 2 = 15k per coin since I am still net 10k profit or it still stays at 25k per coin.

Thanks

[jackg]

If you already realised the gains on tax filing then for tracking purposes your cost basis will become the new amount (from the last buyback at the end of the period you declared for).

To file in a lot of places, you'd have to sell the coin and rebuy it anyway so it makes sense your cost bases should shift at each time it's bought or sold (if you're going for that level of accuracy to include cost basis).

If you're taking this from a personal tracking standpoint, you could have it as either or both (it probably depends on what you want it for - if you're splitting things by year then I'd change it to the 25k a coin but if you're doing an overview of it overall I'd do the 15k a coin).