Hello, I have a debit card that earns cash back in BTC. I believe that most points/CC rewards are not taxable in the USA. Is this correct? So the BTC I earned as cash back should also not be taxable? If so how would I keep up this for tax purposes if I ever sell it. Does Koinly have some way to categorize something like this? Thanks
This is pretty interesting, and I ran into a similar issue when getting change from a crypto transaction.
From what I can tell, Koinly doesn’t support split transactions – that is, it doesn’t permit you to say “Inputs are this, outputs are this other and another.” This is a MASSIVE organizational issue moving forwards, but for now, you could probably manually edit the transaction to include the value , and state the reasons for doing so, then delete the cash back transaction. So perhaps turning this:
balance: 100
withdrawal: 23.50 → world
deposit: world → 0.50
balance: 77
into this:
balance: 100
withdrawal: 23 Note: 0.50 cash back
deposit: world → 0.50
balance: 77
US taxes consider cash back a discount. Thus, this is a reasonably appropriate way of handling the issue.
However, this is MASSIVELY time consuming to do for a regular-use credit card transaction. Koinly severely needs a 3-way merge.
Edit: Sorry for the poor formatting, Koinly’s editor deletes some of the formatting I put in here.
Edit 2: I am not a financial advisor. This was just my solution for a similar problem.
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