What is TaxTrace?

TaxTrace is a read-only compliance and tax-reporting engine for tokenized real-world assets (RWAs) on Robinhood Chain. It is not a trading tool, custody product, or auto-trader. It never holds funds, never executes or proposes trades, and never asks anyone to sign a swap.

The problem it solves

If you hold or custody tokenized assets, tax time is unforgiving:

• The paperwork is exacting. The IRS wants each disposition itemized on Form 8949 (and totaled on Schedule D) with acquisition dates, sale dates, proceeds, and cost basis.
• Wash-sale rules apply. Tokenized securities sit squarely under IRS §1091. Buying back a substantially identical asset within 30 days can disallow a loss — and proving your treatment later is hard without clean records.
• Venues have reporting obligations. RWA venues need deterministic, auditable output for end users without taking custody of anything beyond what they already operate.

Doing this manually across many wallets and positions, with records that survive an audit, is a real burden.

What TaxTrace does

• Indexes wallet or venue activity read-only — public chain data and venue feeds, with no deposits and no transaction signatures.
• Tracks every tax lot with real acquisition and disposition dates and exact USD figures.
• Applies FIFO or SPEC_ID cost basis consistently across your reporting.
• Applies §1091 wash-sale rules in lot-level records so reports surface the treatment you need to review.
• Generates filing-grade reports — IRS Form 8949 and Schedule D, plus Koinly, TurboTax, CSV, and JSON.
• Anchors report hashes on-chain via the Reporter so integrity can be independently verified.

Who it's for

• Individuals who want to point TaxTrace at a wallet address and get filing-grade RWA tax reports.
• RWA venues, brokers, and issuer platforms that embed TaxTrace through the multi-tenant API and SDK.
• Tax professionals and accountants who want clean, itemized, verifiable records instead of a pile of raw transactions.

What makes it trustworthy

• Never holds funds. Read-only by design — no custody path on the public product. See Security & Trust.
• Never executes trades. TaxTrace does not propose swaps or ask you to sign anything.
• Verifiable reports. Merkle-anchored hashes via the Reporter let anyone confirm a report wasn't altered. See Verifying Your Reports.