Maker Vault Tax

I have a maker vault question. I did the following:

  1. ⁠Deposit ETH into a maker vault.
  2. ⁠Drew DAI as a loan.
  3. ⁠Used the DAI to buy ETH.
  4. ⁠Sold that ETH for DAI to repay my DAI debt. I had to sell more ETH than acquired in step 3 due to a price crash (blame Black Thursday).
  5. ⁠Repaid my DAI debt.

I marked the deposit of my ETH collateral as sent to pool.
Do I just account for the DAI in step 1 as a deposit?And account for the trades in steps 2-4 as normal trades as if it’s my own money? Then account for step 4 as a withdrawal - so calculating the capital gain / loss on the repayment of the DAI based on value at that date vs the effective cost at the date in step 1?

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Hoping to find an answer to this myself.

At the moment, I have created a custom wallet for the cdp and have manually remarked all of the deposits of eth and dai in and out of it instead of the smart contract it imported. Then I went and manually added all of the trades inside of the custom wallet. I also made sure to change any other gas fees incurred to reflect as costs instead of as withdrawals.

When you manually add you can add the transaction hash and a note describing the transaction.

The only problem I have now is that it keeps asking me to account for the dai and considers the eth purchase to have 0 cost basis.

I am not sure if that is correct or not, trying to figure out if this will work, and more importantly that its not spending more money than I need to, want to make sure I do it the most effective way possible and don’t accidentally give up cost basis that I could have declared to lower my taxes.

Had the same struggle in similar composition, see also the other folks:

Koinly somehow gets the imports (at least that there are money flows) if you import the ProxyContract 0x… address. However everything is scrambled, so it see various things, but gets confused. Also if you add them by hand you have trouble where the DAI comes from.
On the other hand when i tried to get a estimation i only used all taxhurting sell operations, but then the balance is obviously off.

Hope they built a solution for us :+1:

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