Overview

When disposing of an asset (e.g., as part of Sell, Trade, or Withdraw Transaction, or a fee), Taxbit will determine the appropriate lot to dispose of based on the disposition method (also known as accounting method, cost basis method) selected. A disposition method can be set on the Filer, Account, or Transaction, outlined below.

Setting Disposition Methods

Filer

A default disposition method must be provided for a Filer. If a disposition method is provided at the account or transaction level, it will take precedence over the Filer default.

Account

A default Disposition Method can be optionally provided for an Account at creation. This disposition method will be leveraged over the disposition method set on the Filer. If a disposition method is provided at transaction level, it will take precedence over the Account level method.

Transaction

A Disposition Method can be provided for a Transaction. This transaction-level setting will override any Account or Filer level Disposition Methods set.