Post
Topic
Board Service Announcements (Altcoins)
Re: CoinTracking - Profit/Loss Portfolio and Tax Reporting for Digital Currencies
by
scatterbug
on 03/05/2021, 10:49:59 UTC
@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?