Account for Long Term Capital gains even if coins moved between multiple wallets

Hello Cointracker,

How do I make sure a sale is accounted as Long Term, instead of Short Term? The purchase was over 365 days prior to the sale.

Basically, I can track the coins traveling between multiple wallets of mine, everything appears as “Transfer”, until the final sale.

Nevertheless, CoinTracker accounts for the proceeds as Short Term Gain, when it should be Long Term. Obviously, this has huge tax implications and I would like to resolve this ASAP.

What do I need to change in the way I reported it?

[I am on the Premium Plan, if that helps]

What’s the email address for the “Email Support” which is included in the 10,000 transactions plan?
I would really like to get this short term gain issue solved before I move on to the DEFI headaches. :slight_smile:

This one should be an easy fix. Sign into Cointracker, in the top right-hand corner click on your email and account circle, click on Settings, the third option in the ist will be Cost Basis Method, adjust this setting for the best tax treatment for your individual situation.

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Sorry, I should have mentioned I always reported as FIFO as per my tax accountant recommendation. My cointracker setting is on FIFO.

It doesn’t make sense for Cointracker to account for the gain as short-term. The purchase was over a year prior to the sale. Any other transactions have been moving between internal wallets (self-transfers).

I have reported the problem in the first few days of January. No reply so far.

Could it be that you are set for “by wallet” cost basis tracking instead of “universal”?

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Unfortunately not, I am FIFO + Universal :confused:. I think I need CoinTracker to look at the account and explain how/why the sale goes into the short term bucket, but I am starting to think they don’t have the manpower for any of that. I have spent $399 so far for the 2020 tax year though, and the lack of acknowledgment is quite frustrating.

I switched to “By Wallet” instead of “Universal” just to try (not much to lose, so may as well do some trial and error at this stage).

How surprised when I saw my one large transaction accounted as Long-Term gain! I’m baffled, is it a bug with Cointracker @Chandan?

I can’t think of a valid reason why “Universal” would account for that transaction as Short Term when “By Wallet” accounts for it as Long Term (despite the self-transfers in between).

PS: The Buy and the Sell were both from the same wallet, I had moved the coins in storage in the meantime. :woman_shrugging:

PPS: While this workaround will lower my taxes closer to what they should be, it’s definitely not a good solution because I have not always bought and sold from the same wallet.

I am going to try other crypto tax tools to see if I find something more reliable.

Thanks for flagging — we’ll take a look at the issue you raised and circle back with you directly there.

Thank you. I appreciate the response.

FYI, I re-verified to be 100% sure: I confirm it is “Universal” vs “By Wallet” that impacts the assignment to Long vs Short term gain.

Recap:

  • FIFO
  • The purchase is the oldest/largest
  • All activity was self-transfer
  • Held more than 365 days

I genuinely can’t explain why “Universal” would account it as Short Term. Hope you figure it out!
Thanks.

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Great, thanks for the recap. And just to confirm, 100% of your transactions across all exchanges and all off-exchange wallets across all years and all coins are in CoinTracker right?

~99% of the transactions are reported on cointracker. Whatever may not be on cointracker would be non-significant amounts and two or three years old (insignificant enough that I would not notice if they impacted my Long-Term gain).

I also have a ticket open with BitMax for them to give me my 2020 transaction history. Their history and export tool generates zero transactions, which is wrong. I had two transactions on that exchange. This will impact 2020 taxes, but it’s such a small amount. At the moment I have logged it as Other Transaction (Manual) and it generates a -$35 difference between what I sent to BitMax ($1,034) and what I got back from BitMax ($998).

I sent coins for storage in a wallet on the cosmos chain (not supported by cointracker so far), also flagged as Manual transfer. I’ll update the wallet public address whenever the cosmos chain is supported by Cointracker.

In 2021, I will have to report transactions on the Solana chain and Avalanche Network, but that’s for next year.

I logged all binance margin trades (manual csv import + flagged as margin in cointracker), as well as recorded all transfers between spot wallets and margin wallets within the exchange.

The last thing is if some of the exchange APIs did not fetch everything correctly (e.g. like reported here). If the same has happened on another wallet I might not know about it. This one time I noticed, I fixed it.

Most of the transactions that still appear as “Need Review” are Defi-related. Would love to address them too if I knew how. Not sure what’s the recommended approach to handle staking reward token or SLP token.
I focused on the Long Term Gain issue first, as it was the most impactful and the Defi stuff is unrelated (different coins, different wallets).

Happy to give more details privately.

Very interested in how this should be handled too.

Thanks for posting your experience because that is the main thing I hoped to get out of CoinTracker.

Reading your issues and the dramatic lack of response to multiple forum threads asking for help leads me to believe that I need to look at other products.

It’s a shame.