HEX in Koinly - Display Cost Basis - YouTube

hi everybody so I thought I would do a short  series on cost basis particularly with an emphasis  

with hex in the Koinly tax app in this first part  I'll talk about how you can view your cost basis

and as always this is not intended  to be financial legal or tax advice

I'm not going to get into the specifics of cost  basis but just a quick comment I have is that  

when you do a trade it's easy to know  the price or value that you sold your  

crypto for but when it comes to  your cost basis it could be trickier  

because it depends on the cost basis method that  you're following depending on your tax situation  

it could be things like adjusted cost basis  or average cost basis first in first out, etc

it's easy to lose track of your cost basis if  

you trade a lot or you don't  keep an eye on it over time

and so it becomes harder to know or even estimate  your capital gain or loss for your next trade

if you're using a tax app like Koinly then  

make sure that the settings are  properly set up for your tax situation  

because the way the cost basis is calculated the  way the taxes are calculated will depend on this

the dashboard in Koinly only shows  your current asset cost basis

for a cost basis in the past you  can look at transaction details  

if they're available or you can manually inject  a test trade to back out the cost basis per unit

okay so here we have a test account  it's the same one as the previous video  

it's one of the OA daughter addresses  and it's a very simple account basically

we have a whole bunch of hex that was  brought in back in November of 2020.  

a whole bunch of hex was brought  in the initial cost basis was 3.9  

million us dollars this and this is  for a quantity of 626.59 million hex

also a little bit of eth was brought in for fees

and then there was a single stake which  covered the big payday on November 19th 2020.

after it was end staked there was  only one other thing that happened  

which was i believe this was the  pulse sacrifice by using hex now i  

soft deleted this transaction for the purposes  of demonstrating the cost basis for this account

so if we go to dashboard

we can immediately see the total cost basis of 4.3  million dollars now this is the cost basis to date

if we hover on this message this is not  the total fiat used to buy your crypto  

this may include things like so for example  if you are in a tax jurisdiction where when  

you end stake your hex if the reward  that is paid out is considered as  

taxable income that amount  will increase your cost basis

now if we scroll down to holdings we can see a  breakdown of your assets for this account clearly  

hex accounts for the majority of holdings  we can see a 4.3 million dollar cost basis  

for 851 billion units of hex  which results in around 0.0051

us dollars per unit of hex  as your cost basis per unit

and then down here we have the eth cost basis

if this is your first time

using Koinly or getting it set up you should  head over to settings and make sure that

all the settings here are correct um  for your situation so for example um

after setting your home  country and your base currency

make sure that the cost basis method that you  have selected here is correct and accurate  

and for this example I'm  just using average cost basis

now let's say you want to figure out  your cost basis on November 21st of 2020

if there's a trade transaction nearby  i believe you can click on that and it  

will show you the cost basis but  let's assume that there isn't one  

what we can do is we can inject a test trade  on November 21st to back out the cost basis

so we go to add a new transaction a trade  and for the date we're just going to use um  

a date after the end state date so  let's just use November 30th 2020.

So we are putting in a dummy transaction  to sell let's say a million units of HEX  

and we're just gonna sell this for it  doesn't really matter we'll just use a dollar

so what this says is that if we were to  sell a million units of hex our cost basis  

would have been about five thousand dollars US

so if we bring the numbers over to a spreadsheet  we can easily back out what the cost per unit  

would have been and as you can see we can also  get some additional precision in the decimals

also just remember to delete the  test transaction when you're done

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thanks for watching