Topic: CoinTracking - Profit/Loss Portfolio and Tax Reporting for Digital Currencies - page 26. (Read 122389 times)

Does Cointracking track Cross margin trades on Binance?

Glad to hear it's working for you now.


I don't do any margin trading, but I know at least that the app supports the transaction types "Margin Profit", "Margin Loss" and "Margin Fee".
They aren't shown by default, but can be enabled within the "transaction type" dropdown itself:
https://cointracking.freshdesk.com/en/support/solutions/articles/29000034379-expanded-transaction-types-may-2020-

Hi Scatterbug. Sorry for the late reply. Been super busy with work this week. You've actually been so helpful that I probably don't need any extensive private message help now. Thankyou so much. I think the main issue I had was that i didn't actually enter the deposit as a currency but straight into USDT which is what made all the statistics wrong.


I think this is how I will prefer it. I am not too concerned with capital gains and tax calculations. I just want to see everything as in real life the same as you.


Yeah I already figured this out


Now I can focus on doing the API import. Just wondering do you use Margin trading? Not sure if the API tracks margin trades?

@dr1ver
Binance has shared in its 04/23/2021 announcement, that API accesses will be throttled due to high system load. Therefore, API imports for Binance accounts with many transactions and coin pairs can currently take several hours. Binance is working on this problem.
Please use "check now" for your Binance API job and check also the IP whitelisting. And of course check your permissions. If it does not change for some days please create new API key and with this one a new API job.

Hi,

On the CT Binance API Import page, I've seen the following message posted:
"Binance has shared in its 04/23/2021 announcement, that API accesses will be throttled due to high system load. "
I'm also seeing this under my API key:
"Error: Invalid API-key, IP, or permissions for action
Last imported tx: 27.04.2021 18:07 | Last check: 30.04.2021 22:44"

It was running fine previously. Is there another known issue, other than the throttling?
Do I need to create another API Key?

Not necessarily. As Andreas_CoinTracking mentioned earlier they recommend the "Overall based" method.
Personally I like the "Exchanged based" method because I want to have everything recorded as it actually happened in real life.
You must decide how you prefer it, but you can easily switch between the two methods by adding or removing any fiat transactions.
Just record it one way, make a backup (Accounts > Trades Backup) and then add/remove the fiat transactions and compare the two outcomes.



If you just buy and hold cryptocurrency, then it's usually neither taxable nor reportable.
Only if you later sell/exchange or pay for something with cryptocurrency you usually have to report any gains/losses and consequently may have to pay taxes on it or are able to write off losses.

Usually with any sale/exchange of cryptocurrency the price you sell at will be compared with your original cost basis and the difference is considered a capital gain/loss for tax purposed.
Since stablecoins are cryptocurrency as well, they are usually treated the same.
Most of them do actually fluctuate a little bit, e.g. a Tether is not at all times exactly worth 1 USD, but sometimes a little bit more and sometimes a little bit less.
So depending on how much Tether you sell, your capital gain/loss could be higher or lower than zero.

For example, if you bought 200,000 USDT at a price of 0.9996 USD/USDT and later sold it for 1.0081 USD/USDT, then you will have realized a gain of 1,700 USD.
So it's not nothing.^^
But even with synthetic stablecoins that are guaranteed not to fluctuate it still might be required to report their sale/exchange.

---

The rule is usually relatively simple:
If you dispose of ANY cryptocurrency, then any appreciation or depreciation in value (of those disposed coins) is usually taxable, depending on the particular laws of your country.
Disposal is any time you sell, exchange or purchase something with cryptocurrency, i.e. when you get rid of it and get something in return.
If you get more from its disposal than what you initially paid for it, then you made a gain (or vice versa: a loss).

Coming back to my capital gains example you last quoted:
If you initially bought 8,000 USDT with fiat (be that USD or GBP), then the amount of fiat you paid for it is the cost basis for those Tether.
Later when you use those USDT to buy ETH, then you're essentially doing two things (in the eyes of most country's tax authorities):

• You dispose of USDT at the current market price
• You then buy ETH with those proceeds

Therefore when you use USDT to buy ETH it doesn't matter if it's a stablecoin or not, it only matters if you have a gain/loss from your disposal of those USDT.
If you have a gain, you usually pay taxes on it.
If you have a loss, then you can usually use that to reduce your tax burden.
If you have neither, then you usually still have to report that.

But again, it all depends on the particulars of your country's tax laws.
For example, in Germany you don't pay taxes on any disposal of cryptocurrency for coins that were held for longer than a year. You don't even have to report their sale.
In the US you have to report everything and do pay taxes even on coins you held long-term (i.e. > 1 year), albeit at a reduced rate.
I'm not familiar with the particulars of the HMRC, so your mileage may vary. (Or should I say: your kilometres may vary^^).

---

tl;dr

• You can always calculate a factual capital gains/loss that happens whenever the disposal-value (e.g. when selling/exchanging/paying) is different than the acquisition-value (e.g. at purchase).
• Whether or not you have to report and/or pay taxes on those gains (or are able to write off any losses) depends on your particular country's tax laws.
• Stablecoins are usually considered the same as any other cryptocurrency, and most stablecoins can and do fluctuate in value just the same, even if only very little.
• Even synthetic stablecoins which are 100% guaranteed to not fluctuate are still usually considered cryptocurrencies and thus would have to be treated the same.

And whenever I say "usually" it means that, you guessed it, it depends on the country's tax laws.^^

---

Thanks for the offer, but I have to politely refuse.
I'm not a tax expert and know nothing about the HMRC's specific laws/regulations.
And though you might be ok with that, I wouldn't feel comfortable taking money for that.
I also don't currently have a lot of free time at the moment anyways.
It's enough for squeezing in a post here or there, but not for a dedicated one-on-one via PMs, my apologies.

In your place I would continue to play around with transactions on a test-account to see how it changes the results.
One hint I would give that could make your analysis easier: Set the purchase- and sale-values for each trade manually!
That is, when you enter a transaction then below the input field for the price is a button "Edit Asset value".
If you click that then you can set the value(s) yourself instead of letting Cointracking determine the historical value.
This way, reports are created from simpler numbers which should make analysis easier.

Hope it helps, good luck!

Hi Scatterbug

I really appreciate your message. Sorry for the misunderstanding regarding FIAT/USDT but yes you have the scenario exactly right.

I actually am from England so initially I added GBP into my Binance account. I bought USDT with my GBP. Do i need to add a GBP to USDT trade to start off?

Looking at the cointracking help pages online and also the links Andreas sent in this thread it seems the recommended way to do it is to not have Deposits added to my Cointracking account. Is this right?


I've read this multiple times and still don't get it. Would I have to pay capital gains on my original investment. If so, seems a bit harsh and I'm guessing that's why cointracking doesn't recommend doing it this way.

Would you be open to me paying you to get to the bottom of this via private message?

@danjacksonuk:

Reading through your examples I'm a bit confused because sometimes you say "$" but then mention USDT out of nowhere.
When you say "$" do you actually mean fiat USD?
Or are you exclusively talking about Tether (USDT)?

The only way your examples make sense to me is like this:
1. Deposit $10,000 (as in: Fiat USD) to an exchange which came from e.g. your bank account. => IN: $10,000
2. Buy $10,000 worth of Tether, which should ideally give you 10,000 USDT. => IN: 10,000 USDT; OUT: $10,000
3. Some time later you buy 4 ETH for a total of 8,000 Tether. => IN: 4 ETH; OUT: 8,000 USDT
4. Some time later you sell 2 ETH for a total of 10,000 Tether. => IN: 10,000 USDT; OUT: 2 ETH

Balances afterwards:

• 0 USD
• 2 ETH
• 12,000 USDT

Capital gains:

• Sale of 8,000 USDT (to buy 4 ETH):
  Sell value of $8,000 minus cost basis of $8,000 = $0 gain/loss
• Sale of 2 ETH:
  Sell value of $10,000 minus cost basis of $4,000 = $6,000 gain

Is there something in this example that you don't agree with or think should be displayed differently in the tracker?

@danjacksonuk
Actually I do not get the issue or question you still have. Possibly anyone else can add a comment here.
I suggest just add all transactions as they happened in reality. You received a "start over" mail where everything is described to start.

Is there anyone on this thread that would be willing to help me get to the bottom of my USDT problem and have a chat on telegram, WhatsApp or anything and I would pay you for your time?

Hi

I know you offer support but understandably it is pretty slow and I've been trying to get my head around all  this all weekend. You've been fast on her to be fair but we still haven't resolved it and this is why I am willing to pay extra towards getting set up.
I have actually already checked out the full service, I have enquired about it but that's for help with finding errors etc when I do the import. I just want to be able to understand the software before I make the plunge.


Yeah I get that the deposit doesn't matter in terms of gain calculation. I know your system is mostly aimed towards people trading crypto who want tax calculations. That isn't my priority, I want somewhere I can track my portfolio balances and see average purchase prices and realised and unrealised gains. That is what had drawn me to your software.


This is the problem. I just dont understand what this means and in what context.


I know USDT is a crypto coin but basically it needs to function as one in a software like because that's how people enter into crypto. I completely understand what realised and unrealised gains are the example you gave is right and i agree. I have absolutely no problem with the ETH test transaction. I bought 4ETH for $8k. and sold 2Eth for $10k. $2k each ETH so when sold for $10k that is $6k realised gains and the remaining 2 ETH are unrealised gains from there current value.

My issue is only with USDT. That's all I need to get to the bottom of. In both scenarios of adding a deposit or not the USDT values are all over the place.

I am receiving the following error in Cointracking with automatic API inport for Gemini Exchange:

 (Error: Unsupported trade type: {"type":"AdminDebit","status":"Complete","timestampms":1612994178257,"eid":22593668290,"currency":"EUR",)

to be clear - I already deleted the failing API and created a new one, but the same error occurs.

@danjacksonuk
We offer some support here and individually via Ticket or E-Mail ([email protected]) where you need to mention your user name.
Everything is described here: Happy to help - Support process and contact options for CoinTracking (https://cointracking.freshdesk.com/a/solutions/articles/29000031016/en)
You can check the full service (https://cointracking.info/full_service.php) here if this would help.

Regarding your scenarios. Actually I am not sure I get you here. So I explain again in general.
The FIAT deposit does not matter at all regarding gain calculation. Only if you trade those against crypto and crypto2crypto and back FIAT2crypto.
And if you get paid in crypto you have an income transaction which has a cost base (asset value at the time you get it) as well.
Keep in mind that USDT is a coin as well and not FIAT.
Realized gain is calculated when you really sold coins (with the calculated explained in my last post). Unrealized gain is related to your holdings which you have not sold yet.

Hi Andreas

Thankyou for the reply. I had actually already read both of them articles but to me this all seems really back to front and I just don't understand it. Surely you could build it in a way that if a deposit is made it would not include that in the average price and realised/unrealised gains calculations.

The $6000 gain you mentioned is completely right for ETH. I don't have an issue with that its only with the USDT coin.

For me both scenarios from the first link have flaws.

Scenario 1 -
Add deposit of $10,000. Positives are that in the summary section the correct amount of USDT and ETH show after the test trades. 2 ETH current value and $12k USDT ($10k deposit and the $2k profit)
Average Purchase price page I think is showing incorrectly. It shows my $2k coins in profit and that i paid $2k for them. I didn't pay anything for them because its profit so the figure should be minus. On the realised gains page it shows as -$8000 unrealised and +$8000 realised. This doesn't make any sense so as far as I can see. The only positive being that the summary shows the correct amounts I have.

Scenario 2 -
No Deposit and purchase of ETH is just done with a trade for USDT.
First negative is that the summary sections only shows profits of USDT and not the whole amount I currently have in USDT.
The same as the first scenario, on the realised and unrealised page USDT shows as -$8000 unrealised and +$8000 realised and in the average price paid it is still showing the $2000 total and price paid is $1 each. Don't understand how if its profit.

I am a newly paid subscriber but i do feel like if i can get it right your service is actually undervalued. And because of that I am willing to pay someone from your company to help me get started. I cant wait for the slow back to back messages and would maybe need to find a different service and request a refund which i obviously don't want to do. I just want to get this done so I can focus on my trading. I love the look of the cryptosheets add on so I feel like I'm in the right place.

@danjacksonuk

Good ideas, thank you. There is a German Telegram group is already available. Feel free to create a group in English and paste the link to get in here.

We do our best to answer all questions appear in reasonable time.

Regarding your topic. We do not recommend to track FIAT deposits and withdrawals at all. It is described here: Different ways of managing your portfolio (https://cointracking.freshdesk.com/a/solutions/articles/29000018265/en)
The calculation of the gain is always sell value minus buy value. You spend "just" 8k and not 10k so far according your example.
Buy value of 4000 USD (2 ETH * 2000 USD - the ones left does not matter --> listed under "unrealized gain" as you did not sell them so far) minus 10000 USD (2 ETH * 5000 USD) which leads to 6000 USD gain (10000-4000). And you have your 2 ETH left which you have not sold yet.
See How does the CoinTracking purchase pool work? (https://cointracking.freshdesk.com/a/solutions/articles/29000031793?lang=en)

Hello everyone. New user here. How active is this forum?

After scanning through the first 20 pages it seems that the posts mostly involve everyone posting their problems and looking for fixes from the developers rather than a community helping each other. Would be great if they could create a telegram or Facebook group so we can all interact. Support is slow which is understandable as during a bull run i imagine they have lots of new customers. I want to learn some basics and I'm pretty sure there will be some experienced members in the community that could help quicker than admin.

Before i make the jump to a full api import i have been playing around with the software and running some test transactions and i cant seem to figure out how i insert deposit of fiat into the system. in my random test transactions, I added $10k into the account as a deposit, bought 4 eth for $2k each and sold 2 eth for $5000 each. So now in this scenario i bought 4 eth for 8k and have 2k usdt left over, sold 2 for 10k leaving me with 2 eth and 12k usdt.

For some reason in realised/unrealised gains i have a unrealised gains/loss of $8k for usdt and a realised gain of $8k. I have absolutely no idea why this is like this. I've read all the guides and messaged support but its just so slow.

Can anyone help?

ps. I hope all the original users of cointracking from 2013-2018 are sipping drinks from their yacht. What a time you all got into crypto!!

Hello. I like this topic and i think i can learn so much here. Appreciated

Updates and Improvements
- New CSV Import: Swissborg

- OKEX CSV import now supports the new file format
- Trezor CSV import now supports the new file format
- Crypto.com CSV import update (new transaction types)
- Nexo CSV import update (new transaction types)
- Bitcoin Suisse CSV import update (support for multiple formats)

- Kucoin API import update (support for Kucoin v2 API Keys - all v1 API Keys will be deactivated by Kucoin on 1 May 2021!)

- Binance API import update (fix for ratelimit errors)
- Bitfinex API import update (import of airdrops + profit/loss updates)
- Bitpanda API import update (import of ICOs)
- Indodax API import update (fix for ratelimit errors)
- Bittrex API import update (fix for withdrawals)

- Binance Smart Chain Import Update

- Airdrops and rewards can now be excluded from the capital gains calculation
- FBAR Report adjustments in the tax reports

Correct, only in CSP mode search is working.
You need to use the "advanced search mode" here - on Top above your transactions on the right.
Details are shown in the "Enter Coins" Page when you click on "CSP Mode" below your transaction list there.

In Enter Coins, the regex filters don't seem to work if you are in Server Side Processing mode. They only seem to work if you are using Client Side. Is there a fix for this?