Hi,
I’ve just imported my transactions from BlockFi and Gemini into Koinly. For Gemini, any “Earn” transactions it is marking as “Income.” However, with BlockFi, any interest transactions it is marking as “Loan Interest.” Which is it? To my knowledge (and correctly if I am wrong), both BlockFi and Gemini loan your crypto out, charge interest, and give you a cut of that interest. Why would Koinly be tagging them differently? Which is it suppose to be? Thank you!
I have BlockFi earnings which are in the nature of savings account interest based on a quoted APR. My brief review of Gemini indicated that it is also in the nature of a savings account based on a quoted APR. In these cases, I think it makes the most sense to label or tag these returns as “Loan Interest”.
You can use the “Income” tag although I think it is a more general category and best used to capture business income or Other Income as that term is used in the UK self assessment tax return context.
One good reason to use the “Loan Interest” label for savings account interest if you reside in the UK is that there are special exemptions which allow you to earn some interest tax-free. If savings or loan interest receives no special treatment in your jurisdiction then it doesn’t much matter whether you tag it as Loan Interest or Income as it will all be taxed on the same basis when you prepare your tax return.
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