Taxbit Transaction Types

Taxbit supports the transaction types and subtypes included in the table below. Each type has a specific tax treatment, including the cost basis that is applied, and the form type the transaction will be reported on.

For more details on the specific form types and cost basis details, please refer to the articles below.

Income & Expense

Transaction Type	Transaction Subtype	Description
Income	Blank	Amount received that is taxable as income
	Airdrop	A free distribution of a new token to an existing account owner, typically initiated by a protocol or project
	Fee-Refund	Refunding an account owner for a fee that was previously charged Note that this subtype should only be used when a direct link to the parent transaction is not available. Otherwise, the Adjustment transaction type is recommended.
	Gross-Proceeds-Paid-to-an-Attorney	Legal settlement or similar proceeds paid through the platform to an attorney
	Interest-Crypto-Backed	Interest earned on a loan collateralized by digital assets
	Interest-Fiat-Backed	Interest earned on a loan collateralized by fiat
	Medical-Payment	Income received in exchange for medical or healthcare services
	Mining	Newly minted digital assets received as a reward for validating blockchain transactions as part of a proof-of-work network
	NEC	Income received in exchange for services performed by someone who is not an employee (e.g., non-employee compensation to an independent contractor).
	Payment-Goods	Income received as payment for goods sold by a seller on a digital platform
	Payment-Services	Income received as payment for services rendered by a seller on a digital platform
	Referral-Bonus	A reward paid for referring a new user or customer to the platform
	Rent	Payments received that constitute rental income
	Reward	A more general-purpose reward paid out by a platform (e.g., loyalty rewards, promotional rewards, etc.)
	Royalties	Royalty payments received (e.g., for intellectual property, NFT-creator royalties, etc.)
	Staking-Reward	Compensation earned for staking digital assets to help secure a proof-of-stake network
	Other	A catch-all subtype for any other income payments that do not fit any of the more specific subtypes
Expense	Blank	An amount paid by the account owner, such as a cost or other outflow, to another account owner on the platform, or the platform itself Note – This is distinct from a withdrawal, which moves an asset off-platform, or a trade, which is a two-sided exchange
	Debit	A deposit of assets as part of a debit transaction Note that this is a legacy subtype that is not recommended for future use
	Payment-Goods	An amount paid in exchange for goods on a digital platform
	Payment-Services	An amount paid in exchange for services on a digital platform
	Fee	An amount charged as a fee to an account owner, as a standalone transaction, not linked to any specific transaction or activity.
	Refund	A refund issued by a merchant that was previously received as payment. Note that this subtype should only be used when a direct link to the parent transaction is not available. Otherwise, the Adjustment transaction type is recommended

Transfers

Transaction Type	Transaction Subtype	Description
Deposit	Blank	A transfer of an asset into an account, either from an external source onto the platform, such as a cold wallet, or from another account on the platform
	ACH	A deposit made via an ACH from an external bank account Note that this is a legacy subtype that is not recommended for future use
	Blockchain	An on-chain deposit of digital assets from an external wallet address Note that this is a legacy subtype that is not recommended for future use
	Card-Reward	A reward credited through a debit/credit card rewards program Note that this is a legacy subtype that is not recommended for future use
	Collateral	An amount transferred for purposes of posting collateral as part of a loan agreement
	Cost-Basis-FMV	A deposit where cost basis should be established at fair market value on the date of the deposit, rather than treated as unknown
	Gift	An amount received as a gift (i.e., the giftee’s side of a gift transaction)
	Inheritance	An amount received through inheritance
	Internal-Personal	An amount received from another account on the platform, typically one owned by the same account owner, where cost basis should be retained (i.e., carried over)
	Loan	An amount received as part of a loan agreement
	RCASP	An amount transferred onto the platform from a known Reporting Crypto Asset Service Provider
	Unknown	A catch-all subtype for any other deposit that does not fit any of the more specific deposit subtypes.
Withdraw	Blank	A transfer of an asset out of an account, either to an external source off of the platform, such as a cold wallet, or to another account on the platform Note that this is generally not a taxable event.
	ACH	A withdrawal made via ACH to an external bank account Note that this is a legacy subtype that is not recommended for future use
	Blockchain	An on-chain crypto withdrawal to an external wallet address Note that this is a legacy subtype that is not recommended for future use
	Cold Wallet	An amount transferred off of the platform to a cold-wallet
	Gift	An amount withdrawn as a gift (i.e., the gifter’s side of a gift transaction)
	Internal-Personal	An amount withdrawn from an account to be transferred to another account on the platform, typically one owned by the same account owner, where cost basis should be retained (i.e., carried over)
	Loan-Repayment	The repayment of funds previously received as part of a loan agreement
	RCASP	An amount transferred off of the platform to a Reporting Crypto Asset Service Provider
	Collateral	An amount transferred for purposes of posting collateral as part of a loan agreement
	Unknown	A catch-all subtype for any other withdrawal that does not fit any of the more specific withdrawal subtypes
Cost-Basis- Transfer	Asset-Name-Change	A transfer of cost basis from one asset to another, when a token undergoes a rebrand or ticker change (e.g., MATIC → POL)
Cost-Basis- Transfer	Wrapping	The wrapping or unwrapping of a token (e.g., ETH to WETH, or BTC to WBTC)

Retirement

Transaction Type	Transaction Subtype	Description
Contribution	Standard	A contribution made to an IRA account for a tax year
	Postponed	A contribution made after the normal deadline (i.e., for the previous tax year), permitted under specific circumstances (e.g., military deployment, federally declared disaster relief)
	Recharacterization	A contribution made to one type of IRA (such as a Traditional or Roth), as if it had originally been made to a different type of IRA for that tax year
	Conversion	A contribution into a Roth IRA resulting from a transfer out of a tax-deferred retirement account
	Rollover	A contribution into an IRA account from another eligible IRA account, within the standard 60-day timeframe
	Late Rollover	A rollover completed after the standard 60-day window, requiring a qualifying self-certification reason for the delay.
Distribution	Blank	The outflow of funds taken as a withdrawal from a tax-advantaged retirement account

Other

Transaction Type	Description
Trade	An exchange of one asset for another (e.g., one digital asset for another digital asset) Note that distinct Buy and Sell transaction types are supported, defined below; however, the system is flexible and allows for that activity to also be provided using the Trade transaction type
Buy	Purchasing a digital asset in exchange for fiat
Sell	Selling a digital asset in exchange for fiat
Stake	Locking up a digital asset to participate in network consensus/validation Note that this is solely the act of staking an asset that is already held in inventory. There is a separate transaction type under Income for assets earned through staking.
Unstake	Unlocking a digital asset that was previously staked
Adjustment	An adjustment transaction is used to edit an existing transaction, while still keeping the underlying data of the original transaction. This can be used to increase or decrease the amounts, as well as zero out a transaction entirely. Note that the parent transaction must be provided