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Migrate Open Lots

Contents

 

Overview

In general, a full history of transaction activity is typically required to be provided in order to accurately perform cost basis calculations. By applying the appropriate disposition method on all activity from inception, the system is able to identify the lots that are open, as well as the associated cost basis for those lots.

It may not always be feasible to obtain all historical transaction activity due to resources, volume, etc. (e.g., migrating from another provider or system). In these instances, lots can be established by exporting information about open lots at a certain point in time, and transposing that information into the appropriate transaction types, before ingesting into the Taxbit platform.

Please note: Any future transaction activity that occurs after that point in time would need to be provided to complete the appropriate cost basis calculations going forward.

 

Transaction Mapping

See below for the applicable Taxbit transaction types based on the desired outcome.

Category Description Taxbit Transaction Type
Covered Lots purchased on the platform Buy
Noncovered Lots acquired on the platform Deposit > Cost-Basis-FMV
Lots acquired off the platform (i.e., missing cost-basis) Deposit
Lots with customer provided cost-basis information Deposit + User-Provided Basis

 

Relevant Data

In general, the following information is typically required for each lot to perform this exercise:

  • Asset
  • Quantity (I.e., the amount remaining)
  • Covered/Noncovered
  • Transaction Date/Time (if applicable)
    • For transferred lots, this is when the lot was transferred onto the platform, as this is a required field on the Form 1099-DA.
  • Cost Basis (if applicable)
    • Amount paid, including fees
    • If part of the acquired lot was sold, only the basis of the remaining portion

In addition, the following Customer-Provided Information would also be required, if applicable:

  • Original Acquisition Date/Time
    • When the lot was originally acquired
  • Cost Basis

 

Unknown Lot Details

If the only information available on ending inventory is the asset and quantity, a single Deposit transaction can be provided per asset.

These transactions can be dated at any time before any future transaction activity that is sent to Taxbit. Note, however, that these lots will be treated as being transferred onto the platform as of the date/time of the transaction, and when these lots are disposed of, the transfer date fields will be populated on the Form 1099-DA.