What to expect when transferring between wallets

[kw917]

Describe the problem:

Last year, I transferred assets from Kucoin to Voyager or Coinbase to Kucoin, or these exchanges to my private wallets. These are showing up as Send/Withdrawal and I am seeing a cost basis.

I’m not that versed in capital gains/losses (in crypto or regular stocks), but I know that sending between wallets that I own is not a taxable event. Should there be a cost basis when I transfer? Can you confirm that, for whatever reason (my fault or otherwise), these movements shouldn’t be calculating a cost basis? If that assumption is not correct, please set me straight.

In the screenshot below, VRA is being sent from Kucoin to Verawallet/VRA, BAT/MATIC/LINK is being sent from CB to Voyager, TEL is being sent to a private wallet and so is GO.

All of these associated wallets have been imported and I was careful to ensure everything used UTC timestamps.

Honestly, I’ve spent probably 20 hours in Koinly trying to get it to play nice to generate U.S. tax forms for 2021 and I am getting sick of it. I’m doing my best to remain patient but I’m having a ton of trouble.

I spent a lot of time retagging/defining all of these “Send” items as Transfers but it has gotten me no where. Also, it does it for USDC that I send from Coinbase Pro to Kucoin. When I adjust it to a transfer, it shows in the main dashboard that I paid, for example, $0.40 per unit of USDC and it is now worth $1.00. That, of course, calculates gains which don’t exist.

I really, REALLY could use some helpful advice.

Which exchange/wallet is this regarding?

Coinbase, Coinbase Pro, Kucoin, Voyager and Private Wallets (transfers to/from)

How did you import data into this wallet?

Coinbase via API, Kucoin/Voyager via CSV’s provided by support

What have you tried to fix this so far?

Everything above

[Jethro_Blaze]

I’m not that helpful, but if you rename those public addresses to random names, you should see it as more that you are just transferring to yourself. I guess koinly isn’t smart enough to know that those public addresses are yours, and thinks you are sending that money out into the world still.

The downside to giving your wallets a name, is that automatic APIs will probably no longer work. When I send 100 ETH from coinbase to a wallet named “Hardware wallet 1” I get no profit or losses, unlike your screenshot.

[Jethro_Blaze]

Maybe koinly needs a feature where you can mark a public address as yours? That would be nice.

[Adrian_Mann]

To me it looks like you haven’t imported all you transaction when you moved your assets from coinbase to another wallet.

For example when you moved the 35.96716 LINK on the 25th September you should also have a second transaction for the receiving wallet/exchange as Koinly will not know you are transferring it to a wallet you own unless you have imported the transactions from the receiving wallet. If you don’t have the corresponding receiving transaction then Koinly assumes you disposed of the coins and calculates the capital gains liability.

If the send and receive transactions are within 1hr Koinly then merges the 2 transactions to be a transfer and will look like example below of me moving some eth to my ledger wallet.

Now occasionally Koinly fails to merge the send and receive transactions automatically (normally due to import errors of them being more than 1hr apart) if this happens you just select the send transaction and the receive transaction and click the merge button.