This article explains how each transaction type impacts the PNL calculation.
* refers to the "Action" column in the custom file.
Transfers of crypto between your own accounts (deposits and withdrawals) do not affect your gains or losses, so there's generally no need to reflect them in your transaction history.
However, if the transfer fee is included in the exchange's file or provided via API integration, it will be recorded as a transfer fee (SENDFEE). Transfer (Deposit/Withdrawal) History between Accounts
1. Japan, India and Others
|
No. |
Transaction type （"Action" column in the custom file） |
How it is processed | PNL impact? |
Examples |
| １ | BUY | Purchased at the price*1 on the transaction date and time |
× |
・Buy crypto on exchanges ・Peer to peer trading |
| ２ | SELL | Sold at the price*1 on the transaction date and time | 〇 |
・Sell crypto on exchanges ・Peer to peer trading |
| ３ | BONUS | Profit recognized at the price*1 on the transaction date and time |
〇 |
・Airdrop ・Campaign reward ・Referral reward |
| ４ | LOSS | Loss recorded at the book price*2 | 〇 | The exchange shut down, and the tax office confirmed it can be reported as a loss |
| ５ | REDUCE | Decrease the quantity*3 without affecting the PNL |
× |
The exchange shut down, but the tax office doesn't allow it to be reported as a loss. |
| ６ | STAKING | Profit recognized at the price*1 on the transaction date and time | 〇 | Received a reward for staking |
| ７ | LENDING | Profit recognized at the price*1 on the transaction date and time | 〇 | Received a lending interest |
| ８ | LEND | Locks in the stated quantity | × | Lent coins to a friend |
| ９ | RECOVER | Releases the stated quantity | × | Received back the coins that were lent |
| 10 | MINING | Profit recognized at the price*1 on the transaction date and time | 〇 | Received a reward for mining |
| 11 | Transfer fee (SENDFEE) | Decrease the quantity*4 without affecting the PNL | ×*4 | Paid a transfer fee |
| 12 | PAY | Sold at the price*1 on the transaction date and time | 〇 | Paid for goods/services in a cryptocurrency |
| 13 | BORROW | Incorporate the price for the stated date and time into the book price | × | Borrowed coins |
| 14 | RETURN | PNL is calculated as (price at the time of borrowing - book price) * quantity | 〇 | Returned the borrowed coins |
| 15 | LEVELUP | Add to the book price *2 of NFTs | × | Level-up in STEPN |
| 16 | Payment in a Fiat currency (CASH) | Loss for the fiat currency portion | 〇 | Paid for goods/services in a Fiat currency |
| 17 | TIP | Sold at the price for the stated date and time or decrease the quantity without affecting the PNL | *5 | Sent a tip |
| 18 | EXPENSE | Loss recorded at the book price *6 | 〇 |
If the loss deduction is approved |
- Gifts of crypto worth up to ₹50,000 received from friends or extended family
- Gifts received from close family members such as parents or a spouse
*1 the price -> the market value obtained from cryptact (for supported coins only) / the transaction price provided by the exchange / the price entered by the user.
*2 the book price->the book value. The value of assets and liabilities included in the ledger.
The book price for a cryptocurrency is calculated based on all historical trades.
*3 the quantity -> the quantity of each coin.
*4 × -> the default behavior is to simply reduce the quantity. You can change the setting to include the fee in the PNL.
(Please refer to "Expense transfer fees").
*5 The National Tax Agency clearly stated in June 2021, in "Tax Treatment of Crypto Assets (FAQ)" No. 16 that gratuitous transfers are addressed. Accordingly, we have updated the tip calculation logic as follows.
Please note that whether a tip should be treated as a gratuitous transfer is ultimately determined by the relevant tax office.
| Date and Time When the Tip Was Given | Calculation Logic on cryptact |
| Until December 31, 2020, 23:59:59 | Only the position decreases in a way that does not affect profit and loss. |
| From January 1, 2021, 0:00:00 onwards | Sale at market price. |
Example:
*6 The process will be the same as when selecting "Loss." However, the method of generating the transaction history differs. When selecting "Expense," two records will be created:
・A disposal record at market value (Transaction Type: "Expense")
・A disposal record for the fee currency (Transaction Type: "Sale of Fee Currency")
By combining the gains and losses from these two records, the loss will be recorded based on the average acquisition cost.
[Related Article]
Custom File for any other trades
PNL calculation for borrowing/returning for SPOT trades
How is level-up in STEPN treated in the pnl calculation (level-up of NFT)?
2. Canada
If you tax file in Canada, please refer to the below help page:
PNL Calculation for Each Transaction Type in cryptact for Tax Filing (Canada)