# Impact of defi loans on wealth tax

**URL:** <https://discuss.koinly.io/t/impact-of-defi-loans-on-wealth-tax/19181>\
**Category:** Tax Questions\
**Created:** [December 27, 2023, 2:33pm UTC](https://discuss.koinly.io/t/impact-of-defi-loans-on-wealth-tax/19181 "2023-12-27T14:33:38Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![klueless](https://yyz2.discourse-cdn.com/flex052/user_avatar/discuss.koinly.io/klueless/32/10947_2.png) [@klueless](https://discuss.koinly.io/u/klueless)\
**Post date:** [December 27, 2023, 2:33pm UTC](https://discuss.koinly.io/t/impact-of-defi-loans-on-wealth-tax/19181/1 "2023-12-27T14:33:39Z")

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Hi all!

I’m not sure how to represent debt from central lending pools like Aave, so that they are subtracted from the net holdings. This matters for countries which have a wealth tax on crypto holdings.

In the main tax report, the end-of-year holdings include both the provided collateral (recorded via ‘add to pool’ as per the help section), and the loans (also correctly tagged), so it’s a gross wealth calculation. But I need net wealth with loans subtracted.

FWIW, I’ve tried adjusting the books by adding a manual withdrawal for the debt amount. But this causes other problems as the manual entry has no cost price / history and therefore causes large PNL. Also in the main overview page Koinly seems to ignore negative balances.

Any idea how to achieve this? I’m in Switzerland.

Thanks!

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**Author:** ![system](https://canada1.discourse-cdn.com/flex052/uploads/koinly_app/original/1X/7ac58e5593a7122893d066794a7254dcdb5ddb31.png) [@system](https://discuss.koinly.io/u/system)\
**Post date:** [February 25, 2024, 2:34pm UTC](https://discuss.koinly.io/t/impact-of-defi-loans-on-wealth-tax/19181/2 "2024-02-25T14:34:35Z")

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