Binance Loans with collateral

Used binance loans to borrow usdt by putting up various collateral and the transaction detail has been exported as distribution and counted as income on my report. How do i correct this and what should the detail be, eg Binance Loan deposit? and how and where is the interest expense that i paid recorded?



It also appears as an Airdrop in koinly, how do i correct this as well?

Hi @WkOn,

Welcome to the Discuss community and thank you for this question!

Taking out a cryptocurrency loan, the transactions are imported into Koinly as regular Deposits. There is no tag needed for these. The crypto you receive is your own and the fact that it was borrowed makes no difference from a tax perspective. Any profit/loss you make from these coins is taxed as regular capital gains.

If any airdrops are sent to your wallet, the collateral sent back to your wallet should be tagged as a regular deposit or ‘received from pool’ or not imported at all.

We have an article that shows how to treat loans/collateral in a few different scenarios. That said, if you have any questions about the process, please connect with our support team so that we can review your account for targeted help!

Thank you again, WkOn. Have an awesome day!

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