Hi,
A long time ago I played a blockchain casino game, where you sent some BTC to an address, and you got some back (sometimes less, sometimes more).
In Koinly these transactions are simply shown as “Sent” and “Deposit” respectively.
Do I need to change anything ? What are the best tags ? I’m in the UK where I don’t think gambling is taxable.
Hi @reno
Refer to the article below to document these transactions:
Crypto casinos and gambling winnings
Thanks, but I think my case is a little different because there is no dedicated wallet for each casino user where you can deposit/withdraw. You just send from your main wallet to the casino game’s address (the same for everyone), and receive something back immediately from that address.
The custom wallet you create in Koinly is for the address you sent your tokens to and it does not need to be yours. The guide still applies to your case.
I’m not sure I understand how to apply the guide to my case : should I add a wallet of type Bitcoin Blockchain for these casino addresses, even though the balance on them is absolutely not mine and these addresses have 10000s of transactions that have nothing to do with me ?!
The guide says this :
The deposit and withdrawal would be imported just like a regular deposit/withdrawal transaction. The Lost transaction would be imported as a Withdrawal of 0.25 BTC but with the Realized loss tag. The Won transaction would be imported as a Deposit of 0.50 BTC but with the Realized profit tag.
There is no distinction in my case between deposit/withdrawal and lost/won transactions. So should I tag all transactions to/from this address as realized P/L ?
As the guide mentions, create a custom wallet, add the transfers from your exchanges to that wallet (casino) when you deposit money (BTC) and from the custom wallet (casino) to your exchanges when you withdraw your assets. For your winnings and losses, create deposits and withdrawals tagged as Realized P&L. For instance, if you have a profit of 0.05 BTC, add a deposit and tag it as “realized P&L”. If you have a loss of 0.05 BTC, create a withdrawal and tag it as “realized P&L”.