Acquisitions & Dispositions Treatment

Acquisitions

Below are the various acquisition transaction types and how the Taxbit system will apply cost basis.

Transaction Type	Transaction Subtype	Basis
Income	N/A	Fair market value
Trade	N/A	Fair market value
Buy	N/A	Fair market value
Deposit	Any not listed below	Unknown Unless customer-provided basis information is provided
	Cost-Basis-FMV	Fair market value
	Gift	Fair market value, Donor’s Basis, or Unknown Requires transaction ID of Withdraw
	Inheritance	Fair market value Including long-term holding period
	Internal-Personal	Original basis Requires transaction ID of Withdraw
	Card-Reward	Zero Note – This is a legacy subtype that is not recommended for future use
Cost-Basis-Transfer	Any	Original basis
Unstake	N/A	No change

Dispositions

See below for the various disposition transaction types and whether or not they are reportable on a Form 1099-DA.

Transaction Type	Reportable
Expense	Yes Only if expensing a digital asset
Trade	Yes
Sell	Yes
Withdraw	No
Cost-Basis-Transfer	No
Stake	No

Please note: Any transaction type may potentially be considered a reportable disposition on a Form 1099-DA to the extent there is a digital asset fee on the transaction.

Acquisitions & Dispositions Treatment - 1099-DA

Acquisitions

Dispositions