Gain being shown for a trade which should be tax free

[jsan]

I have bought ETH in 2017 and moved them couple of times between my wallets and sold then in 2021. In Koinly, I’ve the wallets added and transactions add up to the date of buying in 2017. Now for Tax reports, it shows me a Capital gains / P&L for that exact sell.

In Germany, if you hold crypto for one year, it is then tax free when you sell it. Then why Koinly is showing me Gains on that. I’ve set my country to Germany and have the Cost basis method set to FIFO.

[Petur_Koinly]

Hi Jsan,

Koinly will track all of your gains regardless of whether they will be taxed or not.
Once you generate your reports, you will see that all the gains have been split into either short-term or long-term gains. Only the short-term gains will be taxable in Germany so the long-term gains are tax-free!

Best regards,
Petur