With Gilded, you can calculate your gains and losses on your crypto disposals using the FIFO methodology. In other words, you can create IRS-ready reports with Gilded. This functionality is perfect for companies who need to produce gain/loss reports for tax purposes.
The best part? It only takes a few minutes to create a cost basis report.
In this article, we will cover:
What is Cost Basis and FIFO?
How does Gilded’s Cost Basis feature work?
How to get started today
First off, what is Cost Basis and FIFO?
Cost basis is part of the calculation used to determine the amount of capital gain or loss when a digital asset is sold. It’s the spot price of an asset at the time it is received. Then, a capital gain or loss is triggered when the asset is spent, traded, exchanged, or swapped. It’s crucial for tax purposes.
In Gilded, we track this using the tax lots, or record of the date, quantity, and spot price at time of purchase. The holding period is traced by lot along with the cost basis. Each tax lot is unique and will be released on a FIFO methodology. FIFO (First in, First out) is an asset-management and valuation strategy where assets produced or acquired first are sold, used or disposed of first.
How does it work?
You can create a FIFO tax report with Gilded in 3 minutes. Here’s how to do it:
Click on Filters in the top right corner on the Activity page, as shown below.
Click on the Exports tab. Next, click “FIFO Report in CSV Format” at the bottom of the screen to have your report delivered.
The report will be delivered shortly. You can find it in the Reports tab.
IMPORTANT: As noted on the page, make sure you have all of your wallets and exchanges synced to Gilded before running the report. Also, classify your wallet-to-wallet and wallet-to-exchange transactions as Transfers using the Transaction Details screen.
That’s all you need to know!
Got a question? Contact our friendly Customer Success team via the in-app chat at the bottom-right of your screen, or email [email protected]