Universal accounting was the pre-2025 practice of pooling cost basis across all wallets and exchanges as if they were one account, which the IRS ended effective January 1, 2025 in favor of wallet-by-wallet tracking.
Many software tools defaulted to the universal method, which let a sale on one exchange draw basis from units held on another. Returns for 2024 and earlier that used it are not wrong; the method simply cannot be used going forward.
Why it matters: the switch created a transition problem for basis records that the Revenue Procedure 2024-28 safe harbor was meant to solve.
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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.
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