I am trying to enter transactions to register borrowing 1 BTC using 1 BTC as collateral but due to the loss in BTC value, when I repaid the loan, I am only getting 0.7 BTC’s back. Is this the correct way to register the transaction?
Send 1 BTC to Pool
Receive 0.7 BTC back from Pool
If this is the correct method, Koinly does not seem to calculate the capital loss based on this exchange. Do I need to add another transaction to record the 0.3 BTC capital loss?
Thanks for your help!
@simbaprime hey!
This will not register as a loss in Koinly as the collateral is being sent to a pool (pool labels applied) - technically you are not disposing of this asset, so there is no loss to register.
What you could do, is create a manual withdrawal transaction of 0.3 BTC within the pool wallet, and then label it as “Lost”
The Lost label does not realize the loss, you must work with your accountant to understand how to offset this.
Note; the above is simply a way to represent this, and should not be taken as tax advice. Please confirm the laws in your country and always seek clarification from a tax professional. 