CoinTracking - Profit/Loss Portfolio and Tax Reporting for Digital Currencies

[Arkaen]

Hi Dario,

I've been an Unlimited subscriber for the past year and I love your service.

However, in Canada we’re required to use the Adjusted Cost Base (ACB) method for calculating capital gains. None of the other methods (like FIFO, etc) are allowed.

The calculation is explained in the links below, and I've given the equations at the end of this post.

• How to calculate adjusted cost base (ACB) and capital gains (detailed explanation with examples)
  
• Intuit - how to calculate ACB and capital gains
  
• Wikipedia - Adjusted Cost Base
  
• Example ACB calculator (useful for checking results)
  

I believe Bitcoin.tax implements this method, but they call it “Average Cost”.

However, I don't want to use Bitcoin.tax. I’m heavily invested into CoinTracking and plan to use it for years to come. I’m the person who suggested the alternative dashboard layout, and I’ve reported bugs in the past. I’ve also referred many people.

I think you’ve done a fantastic job, but the one critical thing missing is the ACB method required for Canadians (and I expect some other countries). That was originally why I got an Unlimited account.

As tax season approaches (March-April here), I think you'll see many people joining specifically to do their capital gains calculations. I see people defaulting to Bitcoin.tax for this reason, but when CoinTracking has the ACB method, I’ll be able to refer Canadians to your service -- which is superior in every other way.

Here are the equations for Adjusted Cost Basis (additional details in the first link above):


New Total ACB After a Buy Transaction = [Previous Total ACB] + ([Share Price] x [Number of Shares Purchased]) + [Transaction Costs]

New Total ACB After a Sell Transaction = [Previous Total ACB] – ([ACB per Share] x [Number of Shares Sold])

Capital Gain (or Loss) = ([Share Price] x [Number of Shares Sold]) – [Transaction Costs] – ([ACB per Share] x [Number of Shares Sold])


If you need any help clarifying the ACB calculation, I’m happy to help in any way I can. I'm comfortable with math (engineering background) and have some experience with algorithms (mainly signal processing and computational physics, not finance).

Thanks!
-Tim

[AltScope]

Hoping someone can help me with transfers between accounts and how to categorize to establish a cost basis.  Here is the Scenario.
I have 2 Accounts setup in Cointrackin.info.  1 for Mining/trading  and 1 for HODL.  Im going use made-up numbers for the scenario.

1.  I mine .5 ETH to Account A worth $500
2.  Of that I transfer .25 ETH into Account B worth $250
3.  I should now have .25 ETH in account A and .25 ETH in account B both with a cost basis of $250

I am not sure how to achieve this in the software as i was testing tonight.  I did the following.

1. Created a Withdrawal in Account A for .25 ETH (now my balance is good in account A, and i am pretty sure the tax is correct)
2. Did an API import in Account B for my HODL wallet.
3. This created a deposit in Account B for .25 ETH


My issue is now when i look at my realized/unrealized gains area it shows the gain as $250.  Also when I ran a tax report it also showed a gain of $250
So this is making it so my cost basis is $0

Can anyone help me and tell me what I need to modify on my transaction to establish cost basis?  Do I need to add another manual transaction of some kind?  I have the accounts linked in Cointrackiing.info  Is there anyway to make them aware of the transfer?

thanks!!

anyone got an answer for this its something i want to do as well. is it just a case of doing  your reports under "total"?

@Balkos try doing a report under "total" and let us know if you'd be so kind

[Tartiflette]

CoinTracking is working with Kucoin API ?

I configure the API but nothing is downloaded from Kucoin ?

Created: 07.02.2018 17:34 | Last import: 07.02.2018 17:34 | Last check: 14.02.2018 12:11
Label: - | Start date: all entries
Imports: 0 | Mail: no | Auto: no

Someone has the same issue or know how I can fix it ?

Thank you.

[Balkos]

Hoping someone can help me with transfers between accounts and how to categorize to establish a cost basis.  Here is the Scenario.
I have 2 Accounts setup in Cointrackin.info.  1 for Mining/trading  and 1 for HODL.  Im going use made-up numbers for the scenario.

1.  I mine .5 ETH to Account A worth $500
2.  Of that I transfer .25 ETH into Account B worth $250
3.  I should now have .25 ETH in account A and .25 ETH in account B both with a cost basis of $250

I am not sure how to achieve this in the software as i was testing tonight.  I did the following.

1. Created a Withdrawal in Account A for .25 ETH (now my balance is good in account A, and i am pretty sure the tax is correct)
2. Did an API import in Account B for my HODL wallet.
3. This created a deposit in Account B for .25 ETH


My issue is now when i look at my realized/unrealized gains area it shows the gain as $250.  Also when I ran a tax report it also showed a gain of $250
So this is making it so my cost basis is $0

Can anyone help me and tell me what I need to modify on my transaction to establish cost basis?  Do I need to add another manual transaction of some kind?  I have the accounts linked in Cointrackiing.info  Is there anyway to make them aware of the transfer?

thanks!!

anyone got an answer for this its something i want to do as well. is it just a case of doing  your reports under "total"?

@Balkos try doing a report under "total" and let us know if you'd be so kind

It appears TOTAL just show P/L and totals of coins help.  Not for tax reports.

[AltScope]

....
It appears TOTAL just show P/L and totals of coins help.  Not for tax reports.

damnit guess i'll setup 3 accounts (trades,mining,both) till we get an answer thanks for checking though  

[Balkos]

....
It appears TOTAL just show P/L and totals of coins help.  Not for tax reports.

damnit guess i'll setup 3 accounts (trades,mining,both) till we get an answer thanks for checking though  

Per support response i got last night

"
thank you for your message.
The linked accounts stay completely separate, there is no recognition of cost basis or purchase pool across them.
Theis can only be achieved if your have both accounts as trading groups in one account.

If you wanted to try and work with two separate account you could only do this by using spent instead of a withdrawal and income instead of a deposits, since they both change the purchase pool / cost basis BUT this would mean everything spent gets calculated with capital gains and every income will appear in your income report, resulting in much higher taxes. So you could use LOST and GIFT instead and exclude those from the gains/tax report, but the water is getting very murky then...



Best regards,
Christiane

Dr. Christiane Williams
CoinTracking Support

(We are currently flooded with support requests. Please excuse any delays.)"




So it looks like i need to research how the trading groups work.  At the end of the day I just want the coins I put in my ledger to have their original cost basis for tax purposes.  But because I'm using FIFO I'm worried i wont be able to achieve this. 

[rvf]

How do you guys categorize refunds?

I've been using Miningrigrentals and have them set up as an exchange in cointracking.  When I make a rental I categorize it as spend.  I'm not sure what to categorize a refund/credit.  I've been using gift (because it's not income) but I'm not sure which category is actually correct.

Thanks.

[undersun1]

Hi all,

I have a minor bug to report (not a huge deal).  When importing coins via "Bulk Import" (either Excel or CSV - I have tried both), the system doesn't
catch duplicate transactions. 

It would be great if it caught them - let me know if this is something that can be fixed or if there is something I can do to make it catch the duplicate entries.
Thanks

[soothaa]

Yet another large exchange I want to use (Gemini) not supported.. so glad I paid a premium for this..

[davidmullin]

I use Coinomi which (annoyingly) uses different addresses for the same Bitcoin wallet - so far as I can tell, there are actually like 6 or 8 addresses associated with the same wallet.

I tried to set up the BTC Wallet Sync, and provided one of the addresses, but CoinTracking only imported the transactions for that address, which isn't everything in the entire wallet.  I hoped that I could enter the public key of the wallet, but although there are no errors or anything in CoinTracking, there are also no imported transactions (suggesting that this just silently fails).

Is there an way to accomplish what I want - to sync all of the transactions from my Coinomi BTC wallet?  Or, do I have to figure out all of the addresses that have been used, and sync all of them?  Kind of annoying to have to upgrade all the way to Unlimited just to get this one logical wallet imported...

Hopefully, I'm missing something.

you need to put all the address' in to cointracking, personally i just put my receiving address in have that as in only and add the withdrawals/spends manually which isnt ideal but its pretty straight forward and its not like you spend or transfer btc every day is it?

otherwise switch to a different wallet that allows you to enter your change address and put the change address as the sending address

So, it's pretty easy to restrict the incoming addresses, but what about "change" addresses?  Yes, I can manually input all outgoing transactions, but that's a big pain.  And, there are sooooo many "change" addresses for the wallet (like 30).  There's got to be a better way.

Formal enhancement request: Let me put in the public key of the wallet and then get all of the transactions for all addresses on that wallet!

[Balkos]

....
It appears TOTAL just show P/L and totals of coins help.  Not for tax reports.

damnit guess i'll setup 3 accounts (trades,mining,both) till we get an answer thanks for checking though  

Per support response i got last night

"
thank you for your message.
The linked accounts stay completely separate, there is no recognition of cost basis or purchase pool across them.
Theis can only be achieved if your have both accounts as trading groups in one account.

If you wanted to try and work with two separate account you could only do this by using spent instead of a withdrawal and income instead of a deposits, since they both change the purchase pool / cost basis BUT this would mean everything spent gets calculated with capital gains and every income will appear in your income report, resulting in much higher taxes. So you could use LOST and GIFT instead and exclude those from the gains/tax report, but the water is getting very murky then...



Best regards,
Christiane

Dr. Christiane Williams
CoinTracking Support

(We are currently flooded with support requests. Please excuse any delays.)"




So it looks like i need to research how the trading groups work.  At the end of the day I just want the coins I put in my ledger to have their original cost basis for tax purposes.  But because I'm using FIFO I'm worried i wont be able to achieve this. 

So I've been playing with these trade groups.  And i can't get it to work.  If i do a test Sell after transferring coins to my wallet from the exchange, and then back to the exchange from my wallet to sell categorizing all of them in the same trade group.  And then run a tax report only filtering on that trade group i get an imbalance and a 0 cost basis.  Saying i don't have a purchase for that sale....

which is the exact problem i had trying to use 2 accounts.  I get it that support is slammed, but it frustrating to try and figure this out with experiments.

[wiser]

Just wanted to say thanks for a great software! I've been working very hard consolidating all my trading data into my CT account, and I'm just about done. By next week I should be able to do my taxes.

I'm hoping you can add support for altwallets that run on different explorers than chainz, as well as API support for more exchanges. Other than that, it's awesome.

[MegaHustlr]

Hey all.

Is there any known way to import Huobi trades?

Thanks

[CastawayCanuck]

Question about pricing:

Max transactions on the various plans, including free - does this mean per day? or as in forever? eg. on the Pro plan I hit 3500 total (all time) transactions, now I can't enter more.

thanks

[Balkos]

Question about pricing:

Max transactions on the various plans, including free - does this mean per day? or as in forever? eg. on the Pro plan I hit 3500 total (all time) transactions, now I can't enter more.

thanks

I cant say with 100% certainty, but I assumed it was for a year.  If you are expected to purchase/renew the software every year i would assume that counter resets.

[R3P0Ps]

Hi,
I tried to make a search inside the topic but it looks like it's only possible by forum's boards,I'm sure the answer might be somewhere in the topic so I'm sorry about asking.
I have a question regarding airdrops,my MEW is linked with API and after importing tokens are monitored in Cointracking.
But as it's coming from airdrop I edited the entry income as "gift" but when I go in my "Realized and Unrealized gains" the cost of those tokens are not set to zero,and I don't even understand why there is a value here,as it's a gift and a gift is free.
Did I make something wrong?

[wiser]

Question about pricing:

Max transactions on the various plans, including free - does this mean per day? or as in forever? eg. on the Pro plan I hit 3500 total (all time) transactions, now I can't enter more.

thanks

I cant say with 100% certainty, but I assumed it was for a year.  If you are expected to purchase/renew the software every year i would assume that counter resets.

I got the impression it was all time. The unlimited membership is pretty much the way to go if you do a lot of trading, and CoinTracking counts any kind of transaction, including sending from one wallet to another, or mining coin, as a "trade." I have a number of POS-type wallets, and those "trades" sure add up fast.

[AltScope]

Question about pricing:

Max transactions on the various plans, including free - does this mean per day? or as in forever? eg. on the Pro plan I hit 3500 total (all time) transactions, now I can't enter more.

thanks

I cant say with 100% certainty, but I assumed it was for a year.  If you are expected to purchase/renew the software every year i would assume that counter resets.

I got the impression it was all time. The unlimited membership is pretty much the way to go if you do a lot of trading, and CoinTracking counts any kind of transaction, including sending from one wallet to another, or mining coin, as a "trade." I have a number of POS-type wallets, and those "trades" sure add up fast.

i was thinking all time but is this across accounts? you're right about pos wallets they take the piss on transactions which makes it harder to go through your actual trades sequentially unless you filter your wallets and then you might miss a withdrawal/deposit pair for those exchanges that dont support api or in the case that the api farts

[babar123]

cointracking is showing me a bigger REALIZED GAINS than I ever had, 50% too high, how is this possible ? there seem to be a big problem in their calculation, i entered all my csv, finex kraken so on and it shows me huge gains that I never had, how to solve it

[dontomas12345]

Suggestion to Cointracking

Could you have more advanced total PORTFOLIO charts, reports etc.

I know you have the basic pie chart on the dashboard (but this doesn't show percentages unless you hover over the sections)
It would be better if you had a more adanced pie chart as that's what most people are buying for to see their total percentage allocation.

Also please update more exchanges like Gemini, Binance, Kucoin etc... API

I thought it would be more automated, but I trade constantly and am having to manually download then upload csvl files multiple times a day....