Profits event staking ETH into ETH2

[Hugo_Queiros]

Describe the problem:
Staked my ETH on Kraken and Coinbase (ETH → ETH2). Both are showing profits as if I traded for another crypto coin. Since it’s a soft fork that shouldn’t be the case. There are only 2 allowed options on the entry, trade or swap. Both calculate the transaction with profits as if I sold all ETH.

Stating the docs on How to Integrate Kraken & Koinly

• Tag as swap: If a coin has exchanged its symbol or name, use the swap tag, as this is tax free.

This turns out it’s untrue or not working properly. Tagging my transactions as swaps, koinly still calculates the gains/losses on my tax return, as if I sold all ETH (as explained above).

What is your advice given to your users in this situation? I am UK based.

Possible solution: Delete the entries ETH → ETH2, replacing them with manual entries “Type of transaction: to_pool”. I wonder what would happen when the merge actually occurs what would happen to these transactions? I would have to auto-sync again since the beginning, and hopefully the correct cost basis will be taken in account. Is this a valid assumption: ETH2 ticker will become ETH ?

Which exchange/wallet is this regarding?
Coinbase and Kraken

How did you import data into this wallet?
Through api auto-sync

What have you tried to fix this so far?
I tried to set the type of transaction to Swap. Didn’t work, shows the same profits as if I traded for another crypto coin.

[Cogsmos]

Sending the eth “to pool” makes more sense to me because then I can contribute to track my cost basis for regular eth transactions. In this case is just ignore and other coin given in return by the cex.

The idea of eth2 is just something the cexs came up with. There will be no eth2 just Ethereum after the merge. I think swap in and swap out people will see strange cost basis changes they weren’t expecting.