Cost basis tracking
Also known as: base cost tracking, lot tracking
The ongoing practice of recording the base cost of every acquisition so gains and losses can be calculated correctly on disposal.
Definition
Cost basis tracking (base cost tracking in SA terms) is keeping a continuous, reconciled record of what each unit of crypto cost, including fees, across every wallet and exchange. It is the backbone of accurate tax reporting: without it you cannot reliably compute proceeds less base cost, apply FIFO, or defend your figures to SARS. Transfers, swaps and rewards all change the picture, which is why automation helps.
Example
Across three exchanges and a hardware wallet, you track each BTC lot's base cost and fees so that any disposal applies FIFO correctly in rands.
Jurisdiction notes
- South Africa: SARS expects accurate, reconciled base cost records in rands; CARF makes consistent tracking across platforms more important.