hledger entries for adjusting cost basis of investments

buy-and-sell-btc-adjusting-basis-on-both.journal

comment

Journal entries describing a stock or cryptocurrency purchase and
sale, with cost basis adjustments to account for fees. In this
example, even though selling at a higher price, the high fees 
turn the gain into a loss.

This is just one way to record these; I have tried to split
out the parts for clarity. Opening and closing transactions
and some reports have been added to show the results and
verify that the accounts are balanced.

Issues:

Factoring fees into the cost basis reduces the capital gains reported, 
to the proper number for tax reporting; but it disturbs personal reports,
as can be seen in the last income statement, where you'd probably prefer
to see capital gain revenue of $80, and a net loss of $20.

end comment

2021-01-01 open assets/liabilities
    assets:broker:usd         $2000
    equity:opening balances

2021-02-01 buy 0.02 btc at 50000
    ; cc-btc-acquire:
    ; trade
    assets:broker:usd        $-1000
    assets:cc:btc:20210215    BTC 0.02 @@ $1000 = BTC 0.02 @ $1000
    ; pay fee
    assets:broker:usd          $-50
    expenses:fees:brokerage     $50
    ; adjust cost basis to include fee
    assets:cc:btc:20210215   -BTC 0.02 @@ $1000
    assets:cc:btc:20210215    BTC 0.02 @@ $1050 = BTC 0.02 @ $1050
    equity:basis adjustment    $-50
    
2021-03-15 sell all of btc 2/1 lot at 54000
    ; cc-btc-dispose:
    ; pay fee
    assets:broker:usd          $-50
    expenses:fees:brokerage     $50
    ; adjust cost basis to include fee
    equity:basis adjustment    $-50
    assets:cc:btc:20210215   BTC -0.02 @@ $1050
    assets:cc:btc:20210215   BTC  0.02 @@ $1100 = BTC 0.02 @@ $1100
    ; trade
    assets:cc:btc:20210215   BTC -0.02 @@ $1100 = BTC 0
    assets:broker:usd         $1080  ; 0.02 * 54000
    revenues:cc:gain/loss       $20  ; 20 loss (would show as 80 gain without the basis adjustments)

2021-03-31 close revenues/expenses
    ; clopen:
    revenues:cc:gain/loss      = $0
    expenses:fees:brokerage    = $0
    equity:retained earnings

comment

$ hledger bal -E
               $1980  assets:broker:usd
                   0  assets:cc:btc:20210215
               $-100  equity:basis adjustment
              $-2000  equity:opening balances
                $120  equity:retained earnings
                   0  expenses:fees:brokerage
                   0  revenues:cc:gain/loss
--------------------
                   0  

$ hledger bse -E
Balance Sheet With Equity 2021-03-31

                          || 2021-03-31 
==========================++============
 Assets                   ||            
--------------------------++------------
 assets:broker:usd        ||      $1980 
 assets:cc:btc:20210215   ||          0 
--------------------------++------------
                          ||      $1980 
==========================++============
 Liabilities              ||            
--------------------------++------------
--------------------------++------------
                          ||            
==========================++============
 Equity                   ||            
--------------------------++------------
 equity:basis adjustment  ||       $100 
 equity:opening balances  ||      $2000 
 equity:retained earnings ||      $-120 
--------------------------++------------
                          ||      $1980 
==========================++============
 Net:                     ||          0 

$ hledger is -E
Income Statement 2021Q1

                         || 2021Q1 
=========================++========
 Revenues                ||        
-------------------------++--------
 revenues:cc:gain/loss   ||      0 
-------------------------++--------
                         ||      0 
=========================++========
 Expenses                ||        
-------------------------++--------
 expenses:fees:brokerage ||      0 
-------------------------++--------
                         ||      0 
=========================++========
 Net:                    ||      0 

$ hledger is -E not:tag:clopen
Income Statement 2021Q1

                         || 2021Q1 
=========================++========
 Revenues                ||        
-------------------------++--------
 revenues:cc:gain/loss   ||   $-20 
-------------------------++--------
                         ||   $-20 
=========================++========
 Expenses                ||        
-------------------------++--------
 expenses:fees:brokerage ||   $100 
-------------------------++--------
                         ||   $100 
=========================++========
 Net:                    ||  $-120