Now for my own question...
I sell a product or service and I receive cryptocurrency as income for that product or service.
I record the transaction as Income.
Some time later I discover the user has overpaid me, or sent the payment twice, etc.
I refund the user.
There does not seem to be a proper method for accounting for Refunds, I have tried and tested negative Income values, as well as every other possible idea. It seems that "Lost" is the only way available to account for this and IMO is not an accurate method (or description) for this scenario.
If a user sends me 1 BTC, then an hour later I refund their 1 BTC, then I don't want to report this to the tax authority, I have never actually realized a gain or loss and I no longer have the asset, it is a Refund. I'm not willing to accept or report the gain/loss in value for something that was essentially only "held" temporarily by me and then returned to it's origin.
As a workaround I am presently changing the Income to Deposit and itemizing the Refund as a Withdrawal so that the calculations are not done upon those 2 transactions. It seems ideally there needs to be a way to flag the initial Income transaction and the Refund transaction that a user would like to be ignored in CoinTracking's calculations.
What is your suggested method for handling these types of situations?
Hi allanster,
I think in your case it would be better if you reduce the amount received by the amount received too much and set the withdrawal values to 0. So this process is not recorded at all.
You can do this via the "Enter Coins" page.
Example current situation:Income: 1.5 BTC (0.5 BTC paid too much)
Withdrawal: 0.5 BTC
Change the values like this:Income: 1 BTC
Withdrawal: 0 BTC
Thanks I will experiment with that method, what I am doing now seems to allow the tax calculations to be correct.