Transfers

This section provides documentation for managing digital asset transfers within the TaxBit platform. Transfers represent the movement of assets into or out of user accounts and encompass various scenarios, each with specific requirements for accurate cost basis tracking and reporting.

By default, transfers into a system are denoted as ‘missing cost basis’. We currently support the following scenarios to populate basis on the deposit.

• User-Provided Cost Basis: This allows you to provide acquisition information for incoming transfers where the original cost basis is unknown. By supplying detailed lot information, you ensure accurate inventory calculations and disposition tracking.
• Internal Personal Transfers: This feature facilitates the transfer of cost basis between accounts belonging to the same user within your platform. By linking related deposit and withdrawal transactions, you maintain accurate cost basis continuity across internal transfers.
• Gifts: Capture the transfer of assets given as gifts, with options for specifying the gifter’s cost basis. This ensures accurate tracking of the recipient's acquisition cost, necessary for future disposition calculations and potential gift tax reporting.

These transfer functionalities are essential for maintaining accurate inventory records and ensuring compliance with tax reporting requirements.