Ability to Lock Disposal and Tax Method for Each Year (No Double Dipping)

Please enable the Ability to Lock Disposal and Tax Method for Each Year. I would like to insure that if I use FIFO-single one year and the next year a different method, that I am not double dipping transactions for the calculations.

It would even be better if you could pick a different method for each year. Example, on the settings page add another drop down box with the year to apply the methods to, and a icon to lock or unlock the method.

Thanks.

Hey! Thanks for the feedback! In ACCOINTING.com, we work based on a voting mechanism: the more upvotes your feature requests has, the faster it moves in our development pipeline. Hopefully, you’ll get enough upvotes from this community to have it implemented.

@Matt - It’s surprising to me that Jim and I are the only 2 votes on this feature, which suggests the majority of users do not even know that Accointing cannot handle a change in tax/disposal method year over year. I personally did not know until I submitted a support ticket a few months ago asking this very question. This limitation is critical for all users to understand, and should be CLEARLY STATED in BOLD somewhere on the TTO tool. The tool encourages users to evaluate their tax implications and change tax/disposal methods accordingly. Inevitably this will cause users to file inaccurate tax reports simply because they filed previous tax year with LIFO and changed to FIFO for the current tax year, as an example.
Correct me if I’m wrong, but the only way to get an accurate tax report from Accointing year after year (without an insane amount of manual accounting work) is to use the same tax method and the same disposal method every year.
I’m confident this feature would be near the top of the list if users were aware of the limitation.

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I will talk to the team about this, thank you for the feedback :slight_smile:

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@kwstone - thank you for the feedback. I’m the Tax Specialist (CPA) at Accointing, and we are evaluating this. I agree 100% with you. The TTO tool is meant to let users see which tax method is the most optimal to allow for tax planning, but yes, obviously after year 1 in which you have establish a tax method you would generally want to follow the same method.

The tax method is documented on your tax report, so even if you change methods you should always be able to come back to what you had used for filing. Provided your data is complete, as long as you use the same method there would be no double dipping. If you switch method the earlier years would impact your tax basis and gain or loss for the current year, so being able to lock tax basis / method would most definitely be very useful.

I will make sure to talk to our developers about this right after the holidays. Thank you again for the feedback.

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David,

I have upgraded in many of the available crypto tax software other than Accointing.
Accointing is not perfect, but the only one I was able to successfully solve all transactions.

With that being said, TaxBit has this feature available. (locking the tax year). I just thought I would mention it. Maybe the Devs can get some ideas from the TaxBit site. Thanks,

@Jim happy to hear that Accointing was able to solve your transactions. Thank you for the feedback though and I will check out TaxBit’s feature.

We have been playing catch-up being newer than most of our competitors, but we are expanding and investing more resources. I actually just joined in November as part of our expansion so we are definitely focused on additional features (like this) that will enhance our users’ experience. If there is anything else that stands out, please let us know.

Happy Holidays!

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Update - I’ve spoken to our developers about this. Unfortunately this not a feature that we will be able to provide right now, as we are focused on NFT’s and DeFi. Now, I am a CPA so this is, for many reasons, a feature that in my opinion we must have. So while we can’t promise a timeline, we are growing (and hiring), so we are definitely hoping we can revisit this in the not so distant future.

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I’m so glad i found this discussion, because it have been a question i have been wondering. I have a big advantage using HIFO for last years taxes, but expect this will not be the case for this years taxes (i.e. FIFO)…. So now i’m worried reading this that using Accointing.Com i’m going to be screwed trying to change from HIFO in the future!
In the crypto market cycle we are experiencing, many users will be harvesting and using HIFO, but on the upside will be moving to FIFO in future years.
This seems like a critical missing tool feature, that is a time-bomb for many Accointing.Com users who stumble into this issue unaware (or worse still during an IRS audit).
Please, please fix before we all file our taxes next year….

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@DavidAC3 @Matt - where would I find the disposal method and tax method I used from prior year(s) to ensure I’m staying consistent?
fyi - I don’t have my tax report download from last year.

@crypto_dude yea you’re screwed if you change tax methods, but I reached out to customer support of several top tier tax software providers and none of them have this feature.

@Jim - this was TaxBit’s reponse to me, were you told differently?:
“TaxBit will always calculate your tax burden to the best of its ability using the data you have added to TaxBit. When you switch between FIFO and HIFO by Exchange, there is a chance of the same cost basis being used twice, due to the different way those methods make the calculations. For this reason we recommend that you choose one method and stick with it.”

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The Accointing Tax Report Summary (PDF) shows the disposal method used in the top right-hand corner on 1st page.
Also looking at the disposal gain/loss spreadsheet, you could also figure out (manually) how the tool is calculating the disposal basis (obviously less easy).

This feature sounds like it would be an Accointing tax tool differentiator in the market if they could implement it.

I took a look at my Accointing reports for last years dispersals, and i can see how they are being calculated and the UIDs for each dispersal. So i would not think it would be too difficult to add the feature to use UIDs for past year dispersals to avoid double counting them due to changes in method from year to year. Simplification i agree…. but HIFO is too valuable for me to stick with FIFO for last year. If by next years Taxes Accointing can’t support me going back to FIFO, then i plan to manually adjust the reports. Yes it will be some spreadsheet marco work i wish i did not have to do, but since my dispersals are in only one coin on one exchange, and i have all the UIDs from the prior years already considered, i think i could fight my way thru it.

Just FYI on my working plan…… Hopefully Accointing will get working on this feature for the next tax year.

To change your tax method, go to settings → tax settings, then click save after you have made your changes.

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@kwstone - Taxbit din not tell me anything different. Thanks for the info.

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