Topic: CoinTracking - Profit/Loss Portfolio and Tax Reporting for Digital Currencies - page 69. (Read 122657 times)

Sometimes there are discrepancies - Just today, my account balance at Cryptopia is .00000013 BTC lower than Cyrptopia own trade history shows. And I can't figure out why. On top of that CT shows the balance to be .00000013 BTC in the opposite direction - super annoying. But that equals 1 tenth of one cent, and I can make an adjusting entry in CT and move on (my guess is Cryptopia is taking a rounding errors in its favor). But when I run the capital gains report - checking trade by trade - all is correct. Spot on.

I Look at CT-Reports-Balance by Exchange and compare it to my balance at the Exchange. Difference or not, I download the trades from the exchange to Excel, and compare that to CT-Enter Coins-Overview & Manual Import-Advanced Search-[filter on Exchange]-export to Excel. Then it's a simple comparison. Sometimes the way that one exchange reports fees and the way that CT records fees can create an need to make a manual adjustment, but not always. But I always check that. I always reconcile my CT to the Exchanges and Wallets. No matter what you use to track your trades, you'll need to check your work and balance out your accounts. There isn't a program out there that will do it for you. It's accounting at the end of the day.

I paid for the Pro version for the first year. That may have been overkill for what I do, not sure yet. When I get to my renewal, I might only need the Deluxe version. I'll review that in six months when I get there. But I like the functions and coin pricing that CT offers. Works for me. And it's better than the Excel sheets that I used to keep. If your programing skills are strong and you can build it yourself - do it - you will learn a lot along the way.  Otherwise I haven't seen anything else that does what CT does.

Are you saying sometimes, for example, when it reads the Binance CSV there is some sort of discrepency  ? It's automated by both of their computers , binance's & cointracking.info's.   All the balances are spot on just the cap gains are way off.

Do you find the cap gains calculated by cointracking.info correlates well with your actual gains?  Again it's three tiems off yet balances are all correct. I just don't understand.

I can't reconcile anything or try to see if I can make this work because they limit you to a measly 200 trades, and I'm doing like 50 day trades per day.   So I have to fork over $130 or so for something that isn't working right for me now, in hope that I can actually  get it to work..  putting my full trust in them that they are coding things correctly.

Or I can just write my own software. I know relational database design and could generate a price database and for tracking everything.  And then do the tricky coding for FIFO and keeping track of fractions of shares.

I've been at it a couple days and am also finding it does a good job of tracking everything, and the auto lookup of what USD price was correct at what time is very valuable.  I'm finding manual effort on cleaning up the transactions is required and there are some mysteries which makes me feel like a bookkeeper hunting for pennies.

* I had a BTC transfer from a mining pool to Coinbase of my full balance earned at the pool.  I set the software to auto monitor the BTC  Coinbase deposit address on the blockchain.  Two things happened I didn't understand (1) 48 sitoshi were listed as remaining at the exchange when the exchange reported a 0 BTC balance and Coinbase reported receiving the full sum (2) a BTC withdrawal transaction for my Coinbase address that I didn't initiate showed up on the blockchain and was auto-imported.  This was obvious because it was the first transaction for that address. This happened even though Coinbase reports a deposit for the correct amount and no withdrawal.  I"m wondering if that's related to Coinbase transferring between my virtual wallet address and wherever they actually store the funds?  The funds on the blockchain were also listed as (spent) even though they're sitting in my Coinbase account and I didn't spend them.

* It took a while to get all the numbers in the "balance by exchange" to correctly match up to the actual totals I have spread around Coinbase, Nicehash, etc...  I have one remaining discrepancy, a case at an exchange with no funds where Cointracker reports a $59.95 USD balance corresponding to a 0 BTC balance.  I'm having trouble tracking down why that's happening and getting the USD balance to correctly show $0.  I did get everything in crypto correct.

* I wanted to track my spend on mining hardware and created a fake USD-only exchange and put deposit entries there for each receipt for equipment purchased.  That lets the system total my HW spend and compare it to my earnings for tracking payback.

* There's also a subtlety with fees.  It seems you want the fee to be recorded when you are transferring between your own wallets because it's your expense.  You don't want it recorded when an exchange sends you your mined funds as part of a batch to a bunch of customers.  Then it's the exchange's expense.  Cointracker automatically capturing the fees on BTC transfers but not capturing the fees on ETH transfers from ethermine.org.  It doesn't seem to have a way to separately track mining pool fees vs wallet-to-wallet transfer fees for a transaction.

* I haven't figured out how to record an entry and have it categorized as a commodity.  Has anyone found out how to do that?

One suggestion:
Once you upload your trades, either by API or by CSV/Excel file, you need to reconcile your accounts. This can be tricky because you don't have a "bank like statement" to balance against. But you need to look at your balances and trades to make sure they are uploaded correctly and try to tie them out.

I upload my accounts, both with the API and manual CSV, and check them weekly to make sure the transactions are right and complete. (I'm an accounting manager - same thing my staff does with our company accounts too, although that's not with this software and not with cryto, just the same concept). Reconcile, Reconcile and Reconcile - then your reports work out perfectly. I have just over a 1,000 transactions in the last quarter, and an good amount of capital invested (at least for me >50, <100), 5 exchanges (Coinbase, Bitfinance, etc.), 10 wallets which don't have APIs, with a bunch of mining activity. Yes - I've put the hours in to balancing everything, and it took hours. So is this the greatest accounting software I've ever used, no. But it does a darn good job of tracking everything. Come tax time, everything was there.

Like most complex accounting activities - don't be too quick to blame the software. It works, if you check your work.
Good luck   

Hello,

Can anyone tell me why this software do not calculate fees to costs ?
As I understand every exchange do not show always income (sold, buy) without fees.

Why it's not calculated in tax report?

Obviously if people are paying you for a service or product, it's income.   



This isn't hard to figure out, run the tax report and see what it's showing for the cost basis on your trades.  I'm guessing, but it's probably that you don't have a 'source' for your initial deposits, so it's calculating them as if you got your initial cryptocurrency at $0.

I'd pay top price for cointracking.info, IF I think it actually worked right.  Thing is it has ALL the balances correctly.  But it says I owe $115 in cap gains after daytrading for 2 days and only actually getting around $40.

Now they want money for me to try it out further because I am over 200 trades, and I am not about to spend a dime on something i am not convinced is working properly.  And they still hvaen't answered my support ticket about this.

I am going to have to manually calculate over 200 trades myself to and figure out how they figure I owe much more money than I got.

Yup, just trading in and out with about $30k.  I guess the Form 8949 and Schedule D takes care of the 1099K I got from GDAX??!!  Still trying to figure that out.  What I have learned:

1. A multitude of trades can lead to accounting headaches (for example, TurboTax Home and Business can handle a maximum of 3000 transactions AND you have to pay for the top price for cointracking to keep track of of all those transactions).
2. Long term capital gains are preferable to short term capital gains (they are taxed differently).  Although in crypto, it is sometimes hard to hold something for more than 365 days.  Lol

Is the $3 million just the volume of the trades or your gains?  Like I traded for past month with like $200 and already racked up like over $10k in volume.  with just $200.. I am worried about this.  Tempted to just give up.  Don't know what I am getting myself into goofing around with $200.  Every bet someone plays at poker table isn't a taxable event.  I feel like I am just playing cards.. small money.. long hours.. lotta volume.. no profits relaly.

Those 30 payments were people paying me for a service that I offer - so would those payment be considered income?  The rest the $3 million (listed on the 1099k) is just my personal trading.  No one knew GDAX was going to be sending out 1099K's until the very end of 2017 (and by then, I had racked up thousands of trades).

I WAS interested in your software and not so much now.  I've done two days of daytrading and it exceeds yoru 200 record limit.

I am having a big problem with capital gains calculations -- I think your software is FLAWED.   Said I had $150 in gains in those two days when I only gained $40.

I sent a support ticket with the question and you did NOT answer me.

I am not going to fork out bitcoin for your application, if it doesn't allow me to test it out further than 2 days.. especially since it has problems and you aren't responding to my support ticket.

I will most likely design my own relational database and write my own program to generate my form 8949 and income statement.. Using fractional FIFO. 

At least if I write it and it has a bug, I can fix it myself, instead of hoping to get a reply from you folks.

I believe the short/long is the tax category.  If its was help for less than 1 year it will show as short.

Hi -

I have just subscribed to cointracker.info and setting up trades, however I have run into an error on the Trade List page. It is throwing me an error saying

 ''DataTables warning: table id=trade_table - Invalid JSON response. For more information about this error, please see http://datatables.net/tn/1"

Does anyone know why this happens and how I can resolve it?

Thanks,

Rob

Update : Problem solved. I created an exchange name with a backslash i.e. RD\BTC Markets. It seems you can't have exchange names with backslashes in them.

Assuming it's income, yes.

I have about 30 of these warning messages, which correspond to 30 BTC payments I have received in my Coinbase account from other Coinbase customers (and also for the $10 referral fee paid in BTC I receive for referring customers).

So when someone pays me through Coinbase (in BTC) this transaction just shows as a "Deposit" as it should - Then, there is a corresponding "Withdrawal" transaction and another "Deposit" transaction as I send it to my GDAX trading account.  Now, all these transactions show up with NO cost basis (because there is NO trade associated with them), so the cointracking.info software gives me a "Warning" message in the "Capital Gains" report that says "There is no suitable purchase for this sale" and assumes a $0 USD cost basis.  I have tried adding trades, but the message still persists.  Does anyone know how to handle this type of transaction?

Here are the warnings the capital gains report:


Amount          Currency Date Acquired   Date Sold                                                           Short Term Gain/Long Term Gain                                                     Buy Input  Sell Input  Proceeeds / Cost Basis / Gain in USD
0.00660200   BTC   04.12.2017   04.12.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)   __   GDAX   74.76   0.00   74.76
0.01079998   BTC   26.11.2017   26.11.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)   __   GDAX   100.83   0.00   100.83
0.01450300   BTC   25.04.2017   25.04.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)   __   GDAX   18.49   0.00   18.49
0.02220600   BTC   23.06.2017   23.06.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)   __   GDAX   60.09   0.00   60.09
0.02250300   BTC   03.10.2017   03.10.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)   __   GDAX   95.62   0.00   95.62
0.02394883   BTC   12.09.2017   12.09.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)   __   GDAX   99.49   0.00   99.49
0.04000000   BTC   04.01.2017   04.01.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)   __   GDAX   45.60   0.00   45.60
0.04128600   BTC   20.06.2017   20.06.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)   __   GDAX   113.95   0.00   113.95
0.04266892   BTC   06.04.2017   06.04.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)   __   GDAX   51.12   0.00   51.12
0.04562400   BTC   25.05.2017   25.05.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)   __   GDAX   110.29   0.00   110.29
0.05077098   BTC   19.05.2017   19.05.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   98.11   0.00   98.11
0.05527600   BTC   15.01.2017   15.01.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   46.36   0.00   46.36
0.05816800   BTC   17.07.2017   17.07.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   120.59   0.00   120.59
0.06475708   BTC   17.04.2017   17.04.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   76.11   0.00   76.11
0.06492337   BTC   18.09.2017   18.09.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   259.11   0.00   259.11
0.07474800   BTC   18.02.2017   18.02.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   78.96   0.00   78.96
0.08209100   BTC   24.02.2017   24.02.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   98.21   0.00   98.21
0.08527500   BTC   09.01.2017   09.01.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   77.34   0.00   77.34
0.09460000   BTC   20.02.2017   20.02.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   100.38   0.00   100.38
0.09590900   BTC   28.02.2017   28.02.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   114.42   0.00   114.42
0.09602300   BTC   28.03.2017   28.03.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   99.64   0.00   99.64
0.09688723   BTC   13.01.2017   13.01.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   80.67   0.00   80.67
0.11589227   BTC   19.04.2017   19.04.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   139.25   0.00   139.25
0.12500000   BTC   16.01.2017   16.01.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   104.93   0.00   104.93
0.33252100   BTC   31.01.2017   31.01.2017   There is no suitable purchase to this sale. Assuming purchase on the same day for 0 USD. Short (Warning)      GDAX   311.24   0.00   311.24

Lol, thanks (I am such a noob).  That really helps.  But I still can't figure out how to get rid of those "Warnings" on the report.  I have tried adding trades every which way but they just won't go away.

Lol i think you are confusing a short sell with the notion of short and long term gains, the tracker is treating every single one of your trades as short term gains...which is a higher tax % btw