Confusing warning message on Tax Reports screen

Describe the problem:
When I go the Tax Reports screen I see a warning message:

“Some of your cost-basis settings are different from the recommended ones for your home country.”

It doesn’t specify which cost-basis settings are different, so I click the link above it. Which leads me here:

Which still, in my opinion, doesn’t really obviously state which settings are wrong. I have to assume it’s the one with the little yellow triangle symbol setting - “Wallet based cost-tracking”, which is still confusing because Koinly automatically setup a migration, so technically I am using it.

And even more confusing is that this is for my 2024 taxes which didn’t require that setting!

So, can someone at Koinly please clarify this for me? It’s really confusing. Am I getting that warning message because “Wallet based cost-tracking” is checked even though the migration is setup?

I feel like this warning message needs some work.

Which exchange/wallet is this regarding?

Koinly app Tax Reports screen.

How did you import data into this wallet?

No wallet.

What have you tried to fix this so far?

Koinly needs to fix it.

Hi @dropdx

As you can see in your screenshot, there is a warning on the Wallet-based cost tracking which is off and should be on for 2025, however, you should keep it as it is because it will be automatically enabled for you.

Read more about the migration in Migrating to wallet-based cost tracking under new IRS guidance (USA only).

That’s my point though. You already applied the migration, but the warning is still there. It’s very confusing. If you applied the migration, then there shouldn’t be a warning.