I think there needs to be a way to add the transaction (with cost) at just before the paper wallets creation?
Yes, since the wallet neither buys nor sells, it has no effect on the tax.
Perhaps you can simply have your paper wallet loaded with an income transaction on the paper wallet, which, I think, automatically values the coins at the time of the transaction as if you bought them.
I could not find definitions of what the transaction types actually do, so I still have to guess and test a little bit.
I figure since I am using FIFO, that even though I bought the BTC right before the paper wallet was opened, it still didn't use it. So, we need to do what you said. It just seems, there should have been this functionality in the software a while ago, it is around since 2013 I think. It appears like we are figuring out a work around.
I can probably find the original transaction for the purchase of those coins by using the blockchain, but how do we link that to the paper wallet? I would think the software should do this as part of the import, but clearly it hasn't (even after a recalculation) for as I said, my taxes went up.
Thanks for the help
I'm placing a support ticket and will report back next week or whenever they get back to me.