Asset Pricing & Tax Valuations
Understanding how CounterTools calculates asset values for portfolio tracking and tax reporting.
Why Accurate Pricing Matters
When you buy or sell a Rare Pepe, Spells of Genesis card, or any Counterparty asset, the transaction happens on Bitcoin's blockchain using Bitcoin (BTC), Ethereum (ETH), or specialized currencies like XCP and PEPECASH.
But for tax reporting, portfolio tracking, and record keeping, you need to know: "What was that asset worth in my local currency?"
Three-Tier Precision System
CounterTools uses different levels of precision based on the transaction's tax significance:
Daily Pricing (95% of Transactions)
For small DEX trades and low-value dispenser sales. Uses daily OHLCV data from CoinMarketCap and other authoritative sources.
Accuracy: +/-5-10% on volatile days, acceptable for small amounts and meets tax authority standards.
Hourly Precision (Material Transactions)
For transactions exceeding your country's tax threshold. Automatically uses hourly BTC/ETH prices from trusted APIs.
Accuracy: +/-1-2%. The hourly rate is permanently stored and linked to your transaction.
Minute Precision (Coming Soon)
For transactions over $100,000 USD or disputed valuations requiring audit defense. Block-level precision using Bitcoin block timestamps.
Accuracy: +/-0.1-0.5%. Bulletproof audit trail for tax authorities.
Real Example: Why Precision Matters
Setting Your Tax Jurisdiction
Different countries have different rules. CounterTools needs to know your country to:
- *Apply the correct materiality thresholds
- *Use your local currency for reporting
- *Calculate holding periods correctly
- *Generate tax-compliant reports
- 1. Go to Settings → Preferences
- 2. Set your Tax Jurisdiction (e.g., Australia, United States, UK)
- 3. Choose your Preferred Currency (AUD, USD, GBP, EUR, etc.)
- 4. Save
What You'll See on CounterTools
Audit Defense & Tax Compliance
What Makes Our System Tax-Compliant?
- 1. Consistent Methodology: Same method for all transactions
- 2. Authoritative Sources: CoinMarketCap, CoinGecko, Binance (top exchanges)
- 3. Timestamp Precision: Exact hour recorded for material transactions
- 4. Audit Trail: Every price has a source and timestamp
- 5. Conservative Approach: We use more precision than required