The Tax Lots section in consola.finance consists of a comprehensive list of wallets and exchanges tracked by your team, providing an overview of all the tokens available in those sources. It serves multiple purposes to enhance your tracking and management of tokens:

1. Updating Cost Basis: The Tax Lots page allows you to choose between 9 different cost basis calculation methods and allows you to view and verify the tax lots of every unique token present in your wallet to keep you informed and to help you save on taxes.
2. Managing Tokens Beyond Transaction Limits: In situations where certain tokens exceed the transaction limit set by your team, the inventory allows you to manually handle and update the cost basis of those tokens. This enables you to maintain a well-tracked and categorized transaction history, ensuring transparency and accuracy in your records.
3. Reconciliation: The categorized and well-tracked transaction history facilitated by the inventory proves valuable during reconciliation processes. It assists in cross-checking transactions, identifying discrepancies, and ensuring the accuracy of your financial data.

Viewing your tokens in Tax Lots

To view the tokens in your Tax Lots, you need to calculate the cost basis for your source. Follow these steps to calculate the cost basis and access the inventory:

1. Navigate to the Tax Lots section in consola.finance.
2. Within Tax Lots, you will find options to calculate the cost basis for your sources.
3. Select the type of cost basis calculation that should be applied to the sources. This could include methods such as FIFO (First-In-First-Out), LIFO (Last-In-First-Out) and Average cost basis calculations.
4. After the cost basis calculation is completed, the individual wallets will display the updated information, such as the tax lots of the tokens purchased, the amount and fiat value of the tokens and their availability in your wallet.

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The % of tokens available per tax lot depends on the type of cost basis method chosen.

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What are Tax Lots?

Tax lots are used to understand the quantity of tokens purchased in every single purchase. For example, lets say that I purchase 1 ETH on 10/10/22 at a price of $2500/ETH and 2 ETH on 12/12/22 at a price of $2000/ETH. This means that I have purchased a total of 3ETH in 2 Tax Lots.

• Lot ID: An unique ID given to every specific lot.
• Lot Date: The date of purchase of the concerned tax lot. In our example above, the Lot date for the 1 ETH purchase would be 10th Oct 2022
• Lot Amount: The quantity of tokens/ assets purchased in that specific lot. For eg: 1 ETH or 2 ETH
• Asset Cost Basis: The cost basis of a single token in the tax lot. In the example above, the asset cost basis of the 1 ETH purchase would be $2500.
• Total Cost Basis: The sum of cost basis’ of all the tokens in the tax lot. In the example above, the total cost basis of the 1 ETH purchase would be $2500. The total cost basis is equal to the Lot Amount Asset Cost Basis*