Hi.
So my issue is this:
I separate my tax filing in two:
- My personal trades (Koinly)
- Income from a side business (A local tool)
The side business is reported separately on a local tool due to regulations.
The business involves being an affiliate of many crypto exchanges and these all pay in USDT.
- This income is filed on the tax tool and is converted to my local currency. I pay income tax on all of this, prepaying multiple times ever year.
- However on Koinly these shows as deposits. (It cannot be income here as well as that would be double taxation?)
My problem now is the capital gains showing a massive gains as all of these USDT affiliate payments has no purchase price.
I worry that if I do not change something I pay double tax. I struggle to wrap my head around this.
Example: I earn $10k income from affiliate business. I report this quarterly on the business tool and allready prepaid tax on this money.
I now move this $10k to a wallet to buy BTC and this now shows up on my Koinly. This event triggers capital gains as the purchase price on the $10k is 0.
Is this correct or will I end up paying too much taxes?