MC token to BEAM migration - how to report it?

Describe the problem:
I bought a $MC (Merit Circle) token a few days before the project was migrated to $BEAM ($BEAMX on MEXC). The $MC token disappeared from my MEXC account, then the $BEAMX token appeared after a week or two.

Now I have two issues that I’m trying to solve.

  1. The $MC token is still showing in my Koinly report as if I own it.
  2. The $BEAMX token which I sold with a nice profit doesn’t have a purchase history, which means that I have to pay tax for the entire amount.

What should I do in order to transform the $MC token into the $BEAMX, so the money I paid for the $MC token could be the “purchase history” of the $BEAMX?

Which exchange/wallet is this regarding?

How did you import data into this wallet?

Hey @Dmitrij_Motley

Thanks for your message. :wave:t2:

In these cases you will normally only have a deposit transaction in your account equal to the new coins balance ($BEAM). Most exchanges don’t create a “withdrawal” transaction to burn the old tokens ($MC), the old tokens simply disappear from your exchange account. However, because Koinly calculates balances from your transaction history, you will still see the old coins in your Koinly account.

Here’s how to handle this:

  1. Find the “airdrop” transaction for the new tokens

  2. Change it to a Trade and set the “Sent” part to equal the old token and balance

This will turn it into a taxable trade. However, if you believe that this trade should not be taxable then you can tag it as a “Swap” which removes any gains from it and moves your cost basis from the old token into the new one. :+1:t2:

I hope that helps, let me know if you run into any issues. :blush:

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Hey @Carl_Koinly

Thanks for the reply.

I have not found the “Airdrop” transaction for the BEAMX token on my MEXC account, so it hasn’t appeared on the Koinly report either. I would need to contact MEXC support and request this information if my tax agency request it from me.

My solution was, following your option #2, to create a Trade transaction during which I traded 404 $MC tokens for 40400 $BEAMX tokens on the date and time when MEXC officially performed the migration. Then I applied the SWAP tag to this transaction. Everything looks good :slight_smile:

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Hey @Dmitrij_Motley

MEXC must do the swap internally so if it isn’t recorded on the blockchain Koinly won’t be able to import it, but option 2 is perfect for those situations. :+1:t2:

Glad to hear it’s sorted! :blush: