When reviewing your swap transactions in Awaken, you may notice that certain information needs to be adjusted to ensure accurate tax reporting. In this guide, we'll walk you through the best practices for making sure your swaps are accounted for accurately.
Understanding Cost Basis and Sell Price
Cost Basis is the original purchase price of your asset.
Sell Price is the USD value you received when selling an asset.
Capital Gain/Loss = Sell Price - Cost Basis of the sold asset.
In a swap, the Sell Price of the sold asset should match or at least be close in value to the Cost Basis of the asset you received.
Steps to Edit Transactions Correctly
Identify Incorrect Data
If the cost basis appears incorrect, avoid editing it directly. Instead, locate the older transactions that may have incorrect or missing information and correct those first. This ensures your transaction history remains consistent and accurate.
Edit the Sell Price
For the asset you sold, hover over "More," then click "Edit Transfer."
Use our built-in calculator at the bottom of the pop-up to accurately determine the sell price. Enter the relevant transaction details, and the calculator will automatically provide the correct price.
Confirm Matching Values
Ensure the Sell Price of the asset you sold closely matches or equals the Cost Basis of the asset you received.
Finalize Edits
After correcting older transactions and verifying the values, your Awaken Tax account will automatically update and accurately calculate your capital gains or losses.
Following these steps ensures your crypto tax reporting is precise, potentially lowering your taxes by correctly categorizing long-term gains, and keeping your account's calculations running smoothly.