Transfers of USDC from Coinbase Pro to Kucoin showing as Rewards

[kw917]

Describe the problem:
My process to onboard money into Kucoin (to buy other assets) is to deposit USD into Coinbase Pro, convert it to USDC and then withdrawal the USDC from Coinbase Pro to Kucoin. The first two parts are showing up as proper steps in Koinly Transactions, however the last part (the actual transfer from Coinbase Pro to Kucoin) is showing up as Rewards. The Transaction shows an empty source/sender (left side) and the reward on Kucoin (right side). My understanding is that “Rewards” would be classified as Income from a U.S. tax perspective and that this flaw could cause extra taxes to be paid that shouldn’t (as transfers to/from wallets I own are not taxable events).

In reality, I transferred $308.56 USDC from Coinbase Pro to Kucoin with a fee of $11.8762 and $296.68 arrived in Kucoin.

For my 2021 taxes, I am working on retagging everything manually, but could an adjustment be made here so this is easier next year?

Thank you for considering!

Expected Behavior:

• Kurt

Which exchange/wallet is this regarding?

See above

How did you import data into this wallet?

API sync for Coinbase, CSV import for Kucoin

What have you tried to fix this so far?

See above

[Alexander_Koinly]

Hello!

Alex from Koinly here

This usually happens if the option “Tag deposits as Rewards” was chosen when syncing the KuCoin transactions via the CSV.
Koinly needs to see “Send” and “Deposit” transactions without any labels applied in order to automatically merge them together to create a transfer.

Please check and see if this option was chosen when syncing the wallet:

If it was then you just need to delete the wallet and add it again without choosing that option to have it sync properly.

If you’re still having issues after that then please send us an email at [email protected] so we can give more direct support!

Best regards,
Alex