How to handle token migrations in Koinly?

[fbno]

How should I handle token re-launches that require token returns to the deployer wallet?

I have purchased a fair few tokens that gave undergone a re-launch requiring me to send tokens back to the deployer to be issued new tokens back.

However, Koinly see’s the return of tokens back to the deployer as a disposal, and if said token has gone up in price it see’s it as a gain.

Now then I get the air drop of the new token and sell that. Since it’s an airdrop I get taxed again as 100% profit.

Is this correct? How should I tag the transactions?

[Aria_Koinly]

Hi @fbno

You can merge the withdrawal (send txn) with the deposit of the new tokens. If the deposit is tagged as an airdrop, before merging, you should remove the airdrop tag.

If you believe this trade should be tax-free, you can tag it as a “swap”.

Check out Token rebases and symbol swaps (AMPL, DOR, BTT).

Also What are Tags.