Kraken - deposit fees ignored - part 2

Describe the problem:
@Ali_Koinly closed the topic without waiting for me to reply what I have to say in the reply I got here: Kraken - deposit fees ignored - #3 by Ali_Koinly

@Ali_Koinly Please do not close the replies right away after you reply. After hearing what you’ve written, the customer might have something else to say. Or maybe your instructions weren’t clear enough.
I believe the KPI here is to help the customer in a way he/she understands rather than responding without verifying if the customer understood or not.

Please keep it open after you respond here, as I have a feeling I’ll have another reply.

You said:

“Thanks for reaching out! So this is not an error/issue as such, it’s just the way that Koinly handles fees on certain types of transactions”

And then:

then you should add a separate withdrawal transaction for the 4 USD fee and tag it as a Cost

I’m sorry to say, but this is a limitation / bug in Koinly.

You asked me to:

  1. Mark manually a new transaction
  2. Mark it as withdrawal - which has nothing to do here as there was no withdrawal action here
  3. Then mark it as Cost

These 3 manual steps when importing via an automated API. It’s also confusing as in reality there was no withdrawal.

So while Koinly has this limitation, this cannot be said to be the desired behavior.
Especially while your competitors (Coinledger . io) are handling it correctly.

This could not have been any clearer on Kraken:

So this is a bug.
Because the default behavior here is losing my tax deductibles in Koinly.

Maybe you don’t want to prioritize fixing it, but this is a bug that is not clear to me why you can’t fix it. I saw the API response for the deposit action on Kraken, and it does contain all the needed information regarding the original deposit (100 USD) and the fee (4 USD).

Would love for you to answer:

  1. Can you please explain why Koinly won’t fix it, and force me to do manual tasks every time I use Kraken?
  2. Let’s say you have a huge tech debt that you can not do in a reasonable time. Why can’t you do the steps you described for me yourself? OK, deposit entry in Koinly (for technical reasons) can’t have a fee. Sure. But you can still detect this situation and add the Cost withdrawal transaction yourself. Can this please be prioritized in Bug reports (public) | Koinly ?
  3. Regarding marketing it as withdrawal, any better option? As withdrawal is very confusing in this case.

Also as mentioned before, please keep the topic open so I could respond to your response.

If you want to reopen the original thread so I could reply to it there, no problem.

Which exchange/wallet is this regarding?

How did you import data into this wallet?

Hello @Crypto_Margol

Apologies for closing the previous thread prematurely, this was an oversight on my part.

The reason I asked you to create a withdrawal transaction, is so that Koinly can recognise the 4USD as a “Cost”. This $4 Cost would then be highlighted in the Cost & Expenses part of your Tax Report so that you may work with your accountant to understand how best to offset this.

I personally do not have the technical knowledge to answer the questions you have put forward,so I have asked for input from a senior colleague. They would also best placed to handle/create any bug reports. :+1:

You should expect a response in this thread :slight_smile:

Ali :rocket:

1 Like

Thank you very much for your response.

While I understand the “workaround” you suggested, as mentioned above it doesn’t make sense this is how Koinly approaches the issue.

Looking forward to getting a response to my questions/concerns/suggestions.

Hello @Crypto_Margol!

To build up on what my colleague said:
I can see how including the fee separately can be beneficial in this particular situation.

In cases where it is a cryptocurrency that is transferred from your other wallet, the current implementation is more convenient, as excluding the cost completely turns it into a “transfer fee”, which in turn directly affects your cost basis. This, however, has no effect on Fiat transactions, as in your example.

For now, I would recommend the same solution as my colleague, adding a manual cost transaction.

I would also like to note that I forwarded your reservations to our Dev team for them to review and consider for the next update of our Kraken API integration - thank you for this feedback.

Hi @Jack_Koinly , it sounds like a bug when handling fiat.
This is a very common case for people to use fiat in CEXs…
For everyone using fiat (which I bet it’s the majority of Koinly users), you’re losing us by default deductibles in this calculation.

Can Koinly consider it a bug and track it in Bug reports (public) | Koinly ?

I see there is work being done on Kraken right now, so might be a good time to fix it for fiat.
While it sounds to me like it’s not just Kraken, right?

@Jack_Koinly any updates here?

I completely agree this should be fixed. Any timescale for fixing?