Post
Topic
Board Service Announcements (Altcoins)
Re: CoinTracking - Profit/Loss Portfolio and Tax Reporting for Digital Currencies
by
hgmichna
on 04/12/2017, 11:19:34 UTC
My main currency in Cointracking is USD. However, I make both EUR and USD deposits (from a US and a German bank account) in my Kraken account and then I buy BTC (and others) with these deposited funds. For those BTC trades I make from my EUR deposits, the tax form generator spits out an error message and states that no cost basis is present and calculates a 100% gain in USD with a USD 0.00 cost basis. I can not pinpoint where the problem lies as the EUR deposit and trades appear to be correctly imported.

If I'm not mistaken, if your home currency is set to USD then CoinTracking treats euros and all other currencies similar to other investments. Therefore it wants to know when and for how many dollars you bought those euros.

In short, it isn't enough to just transfer euros to an exchange, you have to buy them first and let CoinTracking know that.

If you bought the euros on the same day or if the exchange swapped dollars for euros, you could perhaps, instead of entering them as a "General Deposit (Transfer)"/"Allgemeine Einzahlung (Transfer)", simply declare the euros as "Income"/"Einnahme" to CoinTracking. I believe that CoinTracking then assumes that you bought the euros at that moment for the going euro exchange rate and even inserts that exchange rate automatically.

CoinTracking not only tracks cryptocoin gains and losses, it also tracks currency gains and losses and includes them in your tax calculations.

Note that you have to set your home currency to the one you are taxed in. For example, if you are a German resident then you have to set your home currency to EUR, and all I have written above has to be reversed between EUR and USD.

I don't work for CoinTracking and may be wrong. Don't rely on my hint alone.