Hi, one of the token I has is upgrading to new contract (let say from TOKEN to TOKENv2), meaning, the old token will be worthless soon, and I will have the exact amount of TOKENv2 as it was in TOKEN.
The old contract itself won’t be removed from the blockchain, its permanent in blockchain.
How do I handle this situation for tax?
I’m also wondering this. Had a new token issued and now Koinly is showing double the amount that I purchased which obviously would mess up the tax report.
Hi,
In most cases, you will not need to do anything but you might need to delete the newly distributed tokens.
In Goldmund’s case, he will only need to delete the recent airdrop of the new tokens since Koinly is treating the new token and the old token as the same thing.
Best regards,
Petur
@Petur_Koinly thank you kindly for your answer. So you are suggesting just to delete the new transaction in Koinly? My only other question is when I go to pay for a tax report to be made, will there be an error because the balances in Koinly are different than the balances in my accounts?
Yes, I would recommend deleting the newly received tokens if Koinly is treating them as the same thing (which it usually does).
Koinly will report the errors if your balances do not match the reported balances. You can choose whether to continue and generate your reports or if you would like to fix the errors first.
We would of course recommend that you import your data as accurately as possible but Koinly will take the conservative approach and assume a cost-basis of $0 for any asset that has an unknown origin. This makes it so that the reports can be used even if there are missing purchases but your gains will be higher.
Also keep in mind that there is no limitation on the number of reports that you can generate with your tax plan. If something is wrong on the report or if you need to amend your transactions then you can jsut generate a new report 
Best regards,
Petur
@Petur_Koinly awesome thanks so much for the in depth answer! I wasn’t sure if the error would prevent me from making a tax report.
So just to confirm, I don’t need to “burn” these old tokens or remove them from my account address, just remove the “new” issued token from the Koinly transactions? This way the actual date of purchase/cost remains.
Love the service and have found it to be very helpful. Will definitely be recommending it to other.
One thing I realized that may bring up an issue is that the new token has a new smart contract address. So if I delete that and go off the old tokens, it might just show they have no value.
Is there a way to assign the original purchase transaction of the old token to the new one? By issuing these new ones they definitely made it a mess.
I believe I have figured it out. Just soft deleted all transactions with the new token in Koinly. Old token value still shows and should work. Thanks!
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