My native currency is EUR but Kraken futures are settled in USD so I sometimes need to buy USD with EUR. My problem is that USD cost basis in terms of EUR is not tracked, and when I buy BTC with USD this is not treated as a disposal of USD as it should be, and no capital gains/loss is incurred from disposing the USD.
We don’t track the cost basis of fiat because it’s understood by itself (1 USD = 1 USD) and, usually, exchanging one fiat for another is not a taxable event.
That’s also why you don’t see any gain/loss there - there is none because selling fiat does not trigger capital gains.
If you want Koinly to track the cost basis of USD (or EUR) and calculate gain/loss upon its disposal, you would need to edit all transactions with USD (or EUR) and change it to some stablecoin you don’t otherwise use - e.g. USDP.
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