How to treat crypto loans (YouHodler)

Tax Questions
1

Please help me to find out how to add this sequence of transactions to Koinly.

I used YouHodler in order to borrow fiat and buy more crypto. The sequence of transactions taken from the CSV file that I received from YouHodler support looks like this:

  1. I “Hold” (collateralise) 1.374743 ETH in order to:
  2. “Borrow” 2251.3 USD
  3. I “Exchange” 2251.3 USD into 0.682137 ETH. I pay an exchange fee of 4.5 USD

When it’s time to close the loan:

  1. I “Exchange” 2431.28 USDT (deposited or exchanged from other coins) into 2431.4 USD
  2. I make a “Loan payment” of 2431.4 USD which:
  3. “Unhold” (returns) my collateral of 1.374743 ETH

Please note that I borrowed 2251.3 USD and I paid back 2431.4 USD. The difference of 180.1 USD is a loan interest, which I’d like to add to my expenses.

The question is how to add all those transactions to Koinly. What kind of transaction to choose (with manual submission) for locking your crypto as collateral, receiving it back, borrowing fiat, loan payment and loan expenses?

I think those of you who used other lending/borrowing platforms could already have experience with this kind of transaction.

I will appreciate any help.

1 Like
2

Hey @Dmitrij_Motley :wave:

Great question my friend!

So in this case, I am assuming that you will be creating manual transactions to show this type of Loan, is that right?

Firstly, you would need to add a manual Withdrawal for your ETH and then tag this as “Sent to Pool”. This would remove any gains from the transaction and would essentially be seen as you transferring collateral for the Loan.

The incoming 2251 USD, you would need to create a normal deposit and leave it as that, you dont need to apply any tags to this.

For the exchange of USD to ETH you would need to create this manually. What I would advise you do here is to create a Trade and input the amount of USD exchanged for ETH.

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Now that is the first part of the Loan sorted. The second part, when you close it is fairly straight forward.

You will likely see a profit/loss calculation on the exchange of USDT to USD but repaying the loan will need to be a Withdrawal transaction, and no label need be applied.

The collateral ETH you receive back will need to be a deposit with the label “Received from Pool” applied to it.

Note - Not all of these transactions actually need to be imported to Koinly from a tax perspective. Please refer to the attached guide on what you need to include! If you need any further guidance with this, please get in touch with us at support@koinly.io. :smiley:

https://help.koinly.io/en/articles/4928658-loans-repayments-collateral-cdp

Best wishes,

Ali :rocket:

3

Hi @Ali_Koinly,

It looks like the YouHodler CSV file has these transactions but Koinly doesn’t pick them up.

More specifically, these transactions are listed as ‘LOAN_PAYMENT’, ‘FINE’ (when you don’t repay your loan on time), ‘REOPEN’, and ‘BORROW’.

Any chance you could add these to the YouHodler import process to automate the heavy lifting?

Thanks!

1 Like
4

@Matti hey :wave:

Could you please send the CSV file to our support team so we can take a look for you please?

Please reference this thread in your message so the team know what you are referring to!

support@koinly.io

Best wishes,

Ali

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