This page explains how the mainnet swap is calculated.
1. What is Mainnet swap?
Maine swap is an event where a crypto project, which raised funds via ICO using ERC20 token on Ethereum, launches its own blockchain and offer an exchange from the token to the new currency on the chain.
For major cryptocurrencies, crypto exchanges automatically handle the swap for their clients. Examples are EOS and TRX this year.
The following would apply to those who hold the cryptocurrencies which saw mainnnet swaps.
2. Realized Profit and Loss calculation of Mainnet swap
After talking with our tax accountants, we received the following two comments:
- Swaps from the old token to the new currency is considered to be an exchange of cryptocurrency, thus it needs to be included in profit and loss calculation.
- Swaps done by crypto exchanges could be said done against the asset owner's will, however, the profit and loss should belong to the actual asset owner.
3. How to handle Mainnet swap manually
In case of EOS
- Check the number of EOS token you had at 2018/06/02 22:00 in UTC.
- Enter a sell trade of EOSJPY
- Quantity is what you checked at step #1.
- Trade time is 2018/06/02 22:00 in UTC
- Please research the price by yourself (FYI: cryptact Price of EOSJPY is 1610JPY).
- Enter a buy trade of EOSJPY
- Quantity is the same as the sell trade
- Trade time is 2018/06/02 22:05 in UTC
- Please research the price by yourself (FYI: cryptact Price of EOSJPY is 1610JPY).
* the gap of 5 minutes is required for us to put an automated process in future.
In case of TRX
- Check the number of TRX token you had at 2018/06/24 16:00 in UTC.
- Enter a sell trade of TRXJPY
- Quantity is what you checked at step #1.
- Trade time is 2018/06/24 16:00 in UTC
- Please research the price by yourself (FYI: cryptact Price of TRXJPY is 4.375JPY).
- Enter a buy trade of TRXJPY
- Quantity is the same as the sell trade
- Trade time is 2018/06/24 16:05 in UTC
- Please research the price by yourself (FYI: cryptact Price of TRXJPY is 4.375JPY).
* the gap of 5 minutes is required for us to put an automated process in future.
DISCLAIMER
As in our terms of use, we have no responsibility on the following message. If you have any questions, please reach out your tax accountant.