Selecting token tax lots when transferring to a different wallet
complete
E
Elated Panda
Many people use a cold storage wallet for holding tokens long-term. No trading is done in the storage wallet to minimize the risk of hacks. When we want to sell or trade a token, we move it to a separate ‘transactional” wallet to make trades. With the US going to wallet-based cost basis in 2025, there needs to be a way choose which tax lots are transferred to the "transactional" wallet.
- If HIFO and wallet-based cost tracking is selected, how does Koinly currently decide which tax lots are moved when only a portion of a holding is moved to a different wallet?
o Ideally, there would be a way to select which tax lots move.
Jack
marked this post as
complete
Tokens to transfer are selected the same way as for disposals - using your cost basis method.
So if you're using HIFO, your "most expensive" lots will be transferred out of the wallet. If you're using FIFO - your oldest. Etc.
You can always "simulate" which lots will be transferred (or sold) by adding a manual transaction in Koinly and checking the "Cost Analysis" tab. Just remember to delete it afterwards
D
Driftwood Peacock
Yes, I agree that having an option to move specific tax lots when transferring assets would be a very useful and helpful feature for Koinly.