Describe the problem:
When importing my API transactions from KuCoin, the “Lending” of coins (ie 1 USDT) shows as a withdrawal which I can classify as “to Pool”. I receive the coin back plus interest as a single transaction though (ie. 1 USDT + 0.001 USDT Interest = 1.001 USDT returned), and based on other topics I classify the return as “from Pool”. The Koinly platform gives an error that there is no purchase history for the interest (ie. 0.001 USDT) and I cannot split the transaction back into loan principal plus interest income because the record was obtained through API. Do I just leave it as is? Based on other research, I believe Koinly will calculate the interest as Zero Cost Income, however is this valid for US Tax Purposes?
Which exchange/wallet is this regarding?
KuCoin Lending
How did you import data into this wallet?
API
What have you tried to fix this so far?
I’ve attempted to edit the incoming transaction from 1.001 USDT to show 1 USDT return, and create a separate transaction that shows 0.001 USDT Interest Income, however I cannot edit the 1.001 USDT return from the pool.
Seems like Koinly is doing nothing to help with the problem… So sad, would definitely pay 100$ for the tax sheet but not gonna do it since it’s not working because of this same issue. @Nathan_Koinly
So… I think I found a workaround, but it’s annoying.
On the “withdrawal” of the coin from your KuCoin wallet when you loan out the coin, I’ve been marking them as “Sent to Pool” which creates a KuCoin Pool wallet. You can add a separate transaction into the KuCoin Pool wallet at a timestamp of 1 min before the loan closes and you get your coins back (which would be categorized as “Received from Pool”). If you loaned out 100 USDT (sent to pool), and earn 0.15 USDT interest, when you receive your 100.15 USDT back at 01:05 AM (received from pool), I enter an additional transaction at 01:04 AM of 0.15 USDT received into the KuCoin Pool wallet and label it as “Loan Interest”. That way, when the coins are returned to your KuCoin main wallet, the numbers add up and you’re credited for the loan interest.
It’s annoying though because that’s an additional transaction you need to manually enter which can quickly add up if there are multiple loans being made.
I am having the same issue. Koinly treating the lending as withdrawals and deposits is most certainly incorrect. Koinly’s competitors seem to have the same issue with their software.
I’m getting the same issue too. Income should be correct for US Tax purposes. I’m not sure if Koinly will report it as income though. Their explanation of transactions doesn’t say how missing purchase history coins are labeled or anything about the ‘Pool’.
Same problem here. The issue with doing this manually is over the course of a year hundreds or thousands of micro deposits will become very difficult to manually enter. Has anyone found a solution/workaround yet?