Topic: CoinTracking - Profit/Loss Portfolio and Tax Reporting for Digital Currencies - page 86. (Read 122619 times)

Have something with realized Gain and Loss i don't understand:

Yesterday i did some trades between BTC and BCH (with overall loss, but thats not the story here ;-) )
I imported all (Bitfinix) trades into cointracking.

Under "Realized Gain / Loss for all Sales" it lists all Sell-Parts of the trades and the corresponding Gain/Loss. In fact it is no Sell but just a trade.

Second thing i don't get:

Under "Total unrealized and realized Gain / Loss each Currency" it accumulates all Gains from the list and says i have a huge realized gain. It does not even take all the Losses into account...

@hgmichna
- Yes, you should just give it a try.
It's very easy to separate data in different reports and analyses with our group feature, just as my colleague wrote.
If you are facing problems and need detailed information for your individual case, please open up a ticket so we can help you the best way possible.

- The holding period is considered, even if you sent funds back and forth between different destinations.

- We hope we are able to implement such a functionality for HD Wallets in the future. Thanks for sharing your thoughts.

@drhus
- I guess the problem here, is that the ETH Wallet import does not import internal transactions, yet.
It's easy to find them on Blockexplorers like Ethplorer.io and to import them either manually, or with one of our "Bulk Imports"
This is pretty convenient and should equal your balance. Please give it a try.

@xypos
- We already enable our users to add precious metals to their portfolio and to use all our reports and analyses in order to track them.
It's very easy to enter assets like Gold, Silver and many more on our "Enter Coins" page.
Please take a look at it.

- We give lifelong guarantees to users with a Lifetime UNLIMITED plan only.

Best regards,
Keven
Cointracking Support

I second this. A prime example is Vaultoro, an exchange that trades bitcoin only for gold and vice versa.

It may not even require much of a code change, as the behavior of gold or other raw materials is not different from that of an altcoin.

Would it be possible to start tracking preciosu metals such as XAG and XAU, alongside with fiat investments as well? I think these are the features that are lacking in most crypto portfolio trackers at this time since a lot of crypto holders have investments in forex and precious metals as well.

Also, i see that there is a guarantee on the lifetime contract saying that you'll be able to get the full source code if the site decides to close. In the event of the site closing in the middle of a say, 2 year subscription, will consideration be given to these blokes as well for the source code?

what about ENS names? I've added ETH wallet that has possitive balance and some ENS names (while i used the wallet for bidding on ENS) now the wallet on CoinTracking showing massive negative balance

Dario,

thanks for the explanation! I will try to test the method. I have not fully understood it, but I hope I will when actually using CoinTracking.

Does CoinTracking actually add up the holding times? If, for example, I buy coins on an exchange, send some of them to my wallet, later back to an exchange and even later sell them, there are three holding times to add together. Does CoinTracking do that?

If I could have a wish for future improvement, please let CoinTracking import HD wallet transactions and automatically match them with exchange transactions. As far as I can see, auto-matching is technically possible.

@1MExpodingSuns:
We are already working on an ACB method for the tax calculation and it will be released next month.


@Daled12:
1) Let's say you trade 1 ETH for 400 USD.
This case is easy, because we already know the value in USD ($400)

2) Let's say you trade 1 ETH for 0.05 BTC
In this case the "Best price" method will convert the BTC price into USD at the time of the transaction.

3) And if you trade 1 ETH for 5 LTC, the "Best price" method will convert the ask currency (ETH) into USD.


@hgmichna:
I know that I have already answered this question here a few months ago, but I just can not find the post.
So let me try it again

It is possible to take HD wallets into account for the tax calculation with the "filter" setting.
You can assign a "Trade-Group" to all trades, which have been moved to your HD wallet and exclude them from the calculation.
The "Trade-Group" can be for example the BTC address.

Some BTC wallets do provide the fee, but unfortunately not all of them.
But we are working on an update for the BTC wallet import, which will be able to handle all fees.


@nazdrovie:
If an IP hits the server too often it will be blocked for a short time.
I have cleared the list of blocked IPs and it should work again for you.

Best,
Dario

Hey guys,

Got

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A typical trade scenario is that somebody sends bitcoins to an exchange, trades them back and forth for a while, then withdraws the bitcoins (hopefully more of them) back into her local wallet.

Local wallets are typically of the HD type, so there can be many addresses from which bitcoins are sent, even in one transaction. But it is important to track the bitcoins on the local wallet, because any gains can be tax-free (Germany) or incur a reduced tax (US) when they are held for a certain time, like one year.

How easy or difficult is it to let CoinTracking know which bitcoins have been withdrawn from an exchange into a local wallet and later sent to an exchange, so it can determine the holding time?

I have seen a function in CoinTracking that allows me to enter a single address to be monitored, which could be a local wallet address. But with an HD wallet I would have to enter many addresses, one by one, to use that function. Is there a better way?

There is also the question of fees when sending from a local wallet. I have looked at Mycelium export files, and unfortunately they don't include a separate fee entry, so the sent bitcoins will be a tad more than the ones received by the exchange. Does CoinTracking actually look into the blockchain to match these outgoing and incoming coins?

Before I study and analyze CoinTracking functionality, I'm sure the answer is already known very well, so I'm asking here first.

@dario

Thanks, that is good news, sounds like you are on top of it.

I do think you need to do a bit better job of explaining that though on the site(maybe I am not seeing where it is fully explained), its not really clear how it works, especially if you don't have an accounting background.

For example I am still a little confused on this explanation on the site:

Best Prices: (recommended)
The currency with the lowest conversion difference (spread) is used in this order:
1. Fiat currencies (USD, EUR, GBP...)
2. Bitcoins (BTC)
3. Altcoins and commodities (ETH, LTC, XAG...)


So when I trade BTC for XRP, you just said in your response you are using the US dollar value of the BTC to determine the transaction price, correct?  So when would case 2. (BTC) ever be used?  Or in my example are you using case 2?

Is there any chance of supporting the Canadian accounting system for capital gains?

It uses an adjusted coat base ("ACB") that is basically the average cost to date of all transactions for that commodity at the time of the transaction, with the ACB being exhausted and resetting to 0 each time the individual reduces the commodity to 0.

The taxation system doesn't permit LIFO, FIFO, HIFO, or LOFO, but basically just averages the cost of all prior transactions for each transaction until the commodity is exhausted to 0.

There is a simplistic explanation with examples here:

https://www.adjustedcostbase.ca/blog/how-to-calculate-adjusted-cost-base-acb-and-capital-gains/

@HelloCrypto:
Ahh... I see.
I will try to update that


@Reynaldo:
You can use a lifetime subscription for up to 10 accounts, as long they are linked.
We also provide corporate accounts if you need more than 10 portfolios. Just let us know via a support ticket please.

Best,
Dario

Is it possible to buy a lifetime and monitor a massive amount of accounts from there? if its possible, let me know via pm or here.

Hey Dario. Sure, the custom date range is a great feature - without that I would be having major issues! Just saying it would be nice to have a radio button at the top to switch between 'standard calendar years' and 'UK financial years', then if the latter is selected, the drop downs become 01.04.yy - 31.03.yy

Also, when I do input a custom date range and run the report, the value of 'Tax Year' in the table becomes 'Custom' for each report - when you have a few reports there it's hard to follow which one is which, so it would be great if rather than displaying 'Custom', it actually displayed the date range that the user has picked.

Cheers

@HelloCrypto:
Next to the "Tax year" label, you will find a link called "custom date range".
Use it if you want to create a tax report from 1 April to 31 March.

At the end you will see the total calculated gain for the tax period.
You can just subtract £11,500 from it and multiply it with your tax rate.
But I will put a Capital Gains Tax Allowance on the to do list to make it easier


@Reynaldo:
You mean a %-value for the PnL?
Sure, I will add it.


@happy9z:
Looks like your BCH transactions are missing.
You should add an "Income" of the amount of BCH you received on the day of the fork.


@hgmichna:
Which local wallet are you using?
If it supports CSV exports, it should be very easy to import all transactions using the Excel oder Custom Exchange import.
Or just send us a CSV file and we will create an import for it.


@Daled12:
You are right. Each coin has it's own price.
Usually the spread should be <1%, but for some exotic coins with a low trade volume (or older transactions < 2015), it can be higher.
Using the "Best Price" setting, this spread will be ignored and the price of the higher volume coin will be used.
That's why I recommend to use this setting for all gains and tax reports.

Best
Dario

On the new Trade Analysis can we add % profit when we choose a specific coin? On the square that says Break Even price, total cost, current value profit/loss

Hey there. The UK tax year isn't based on calendar year, which makes it difficult when producing tax reports. The UK tax year is from 1 April to 31 March the following year i.e. 01/04/2016 to 31/03/2017 (dd/mm/yyyy). Please could you add that feature to the tax year options (dropdown) when generating a new tax report? That would be great.

In addition, on the Tax Data side, it would be beneficial to have a new input for Capital Gains Tax Allowance (in the UK the first £11,500 (changes every year) of capital gains are not taxable), where the user could input a value which is then subtracted from the total gain, where a new value (Total Gain - Allowance) is used to calculate the total tax amount.


Thank you very much - I hope you get a chance to consider these improvements.

Hi cointracking,

Do you know how to fix this one? Would you please help?

Thanks,

@Dario3000,

you mentioned that you might add more input formats. I could arrange to get some sample files. Where should I send them, if at all?

Do you already have input formats for local wallets? If yes, how does CoinTracking match a record from an exchange to a record from a local wallet? Or does the user have to do this by hand?

Local wallets are not very important for tax calculations, but sending from a local wallet to an exchange incurs the miner fee and proves a longer holding time.

One more thing...

I am guessing when I trade BTC for XRP, you are using 2 seperate pricing databases to get the purchase and sale price, correct?

You are grabbing the BTC price and the XRP price seperately, right?

This is causing big errors when recording trades because your databases aren't that accurate.  

I have a suggestion, lets say I am trading BTC for XRP.  Why not just use the BTC price(I assume this database is your most accurate), and then subtract the trading fee to come up with the Altcoin price?  This would be much more accurate.  Currently when I am switching from best, transaction, and counterparty pricing, I am seeing huge(2x) differences in my realized gains numbers which is not giving me much confidence in the software.