The activity entered into by an Account Owner, on their Account, such as buying, selling, trading, receiving income, making payments, etc.
The Taxbit platform enables our clients to provide Transaction information, which is then processed, and leveraged for downstream cost basis and/or reporting purposes.
Transaction information must be provided using the Taxbit Data Model:
- Each Transaction must have a unique ID (i.e., a Transaction ID), and must be for a single Account.
- In addition, the date and time the Transaction occurred must be provided (in UTC, with support down to the millisecond), as well as the relevant Transaction Type (e.g., Buy, Sell, Income, Expense, etc.), including any Transaction Subtype, if relevant.
- Based on the Transaction Type, additional information may be required – such as information on the asset sent and/or received, including the currency and amount, as well as any fees associated with the transaction, including the currency and amount.
Notes –
- Perspective: Note that the terminology “Received” and “Sent” is from the perspective of the Account. For example, as part of a Buy Transaction, the Received Currency and Quantity fields refer to the asset being acquired. Conversely, the Sent Currency and Quantity fields refer to the asset being disposed of, as payment for the acquired asset.
- Multiple Assets: While a Transaction can include a different asset in the Sent Currency, Received Currency, and Fee Currency fields, we do not currently support multiple assets within each field (e.g., BTC and ETH for USD). We are in the process of enhancing our support of multiple assets within these fields, starting with fees.
- Fees: The Received Quantity and Sent Quantity must be the total amount prior to applying any fees. In general, our Tax Engine will add the Received Quantity to inventory, remove the Sent Quantity from inventory, and then remove the Fee Quantity from inventory. As a result, if the Fee Quantity has already been deducted from the Received Quantity, or added to the Sent Quantity, calculations and final inventory will not be correct.
- Rounding: Our Tax Engine supports up to 18 digits of decimal precision, which aligns to the resolution of ETH.
Example
Consider the following Transaction details, which relate to a Buy of 1 BTC for 100 USD, with a platform fee of 0.01 BTC:
- Received: 1 BTC
- Sent: 100 USD
- Fee: 0.01 BTC
As a result of this Transaction, the inventory would be updated as follows:
- 0.99 increase in BTC (1 BTC - 0.01 BTC)
- 100 decrease in USD