Transfers between Wallets are showing as CAPITAL GAINS!?

Tax Questions
#1

This is just wrong. I have added all my wallets, csv, api all methods, and I the first 5 pages of my tax report showing profit/capital gains for transfer between Coinbase and my Trezor??? wtf??? How is this possible? How can I fix it.

I see many videos an post where Koinly explains clearly every step but here I get nothing? I have no idea how to fix this.
Everytime I sent USDC from Coinbase to Celsius i have to pay taxes??? Everytime I buy ADA on Coinbase Pro and send it to Stacking Pool I have to pay taxes? what? Even between Coinbase Pro and Coinbase omg

Pls someone help me, owise I’ll have to change to another Crypto Tax software after taking more than a week to load all my wallets. cmon.

4 Likes
#6

Same issue. Hopefully don’t have to manually set the SEND as TRANSFER as as far as I can tell the amount sent also needs to be manually entered which means deducting gas fees etc. Fun.

1 Like
#7

Go to the send transaction and check the box to the left then check the box in the corresponding deposit transaction. Then at the bottom of the screen click “Merge”. THis will combine the transactions to make it a transfer.
KOINLY Usually gets this right but there are a fair number of times it misses it. THis could be due to the time of the TXs being too different. (Often due to time zone issues. Some platforms export data in your local time zone in CSV exports while APIs use UTC) (Also could be due to the small rounding errors in the amount sent and recvd. If the amount recvd is larger than sent amount it will not merge them)
I have learned that EVERY transaction MUST be checked, I do a check about every week of the txs done for the week to make sure every thing is OK.

#2

I hate to not answer this, but I am having the same trouble. With api or csv, delete wallet, setup from scratch, same problem. Support suggested this might be a bug with coinbase pro, but that’s not useful. Other suggestions didn’t remedy the problem. I hope to find a solution here soon or I will be forced to a different service as well.

Anyone else see this?

#3

What settings do you have e.g. is “wallet based cost tracking turned off”

Capture

#4

It is set off…I will turn it on to see if that makes a difference. Thanks for the suggestion.

#5

Are the transfers between wallets displaying in the transaction listing as “Transfer” or “Send”?

I bridged ETH to Arbitrum from Metamask and found the Metamask API marked that as “Send” which is deemed a disposal, so capital gains are calculated. By editing the transaction to “Transfer” between wallets that removed the capital gain.

I tried turning on the wallet based cost tracking as suggested above, but that skewed my overall capital gains.

#8

i have the same bug. transfers are booked as capital gain or loss. is there an official statement of the software team? seems to be a common problem

#9

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