This help page provides guidance on how to handle profit and loss calculations for each type of transaction in the DeFi feature.
If you tax file in Canada, please refer to the below help page.
DeFi: PNL calculation for each transaction type for Canada (Canada)
What is cryptact’s DeFi Feature? (Reference: How to use DeFi functions)
When you add a wallet address to cryptact, the transaction history for that wallet address will automatically be reflected in cryptact for Supported blockchains. Transactions that the system can identify will be automatically recognized, and the profit and loss calculations will be done automatically. However, transactions that cannot be automatically classified, as well as deposits and withdrawals that are not related to DeFi transactions, will be classified as "Unclassified," requiring manual classification.
This help page provides explanations on how profit and loss calculations are handled for each type of transaction when automatically identified and introduces the types of transactions that can be selected for transactions that were not automatically classified.
Table of contents:
- Unclassified "Transfers" (Deposit)
- Unclassified "Transfers" (Withdrawal)
- Unclassified"Risky"
- Unclassified "Unknown transactions" and "Other"
1. Unclassified "Transfers" (Deposit)
| Transaction Type | Outline |
Impact to PNL Calculation |
| Self | A deposit from your other wallet or from the exchange |
As it is not necessary for profit and loss calculation, it will be excluded and not shown on the transaction page. |
| Receive | A cryptocurrency receipt as a result of a purchase/swap, or peer to peer trading | Bought at market value |
| Bonus | Other than above. A cryptocurrency receipt as the result of staking reward, airdrop, or other types of rewards | Considered as a profit at market value |
| Fee Only | Reason for the deposit is unknown, or ICO reward |
It will be excluded and not shown on the transaction page. |
2. Unclassified "Transfers" (Withdrawal)
| Transaction Type | Outline |
Impact to PNL Calculation |
| Self | A withdrawal to your other wallet or to the exchange |
As it is not necessary for profit and loss calculation, it will be excluded and not shown on the transaction page. If there is a fee associated with the withdrawal, the fee portion alone is automatically reflected as transfer fee (Type:SENDFEE)*1 |
| Pay | Sell crypto on exchanges/peer to peer trading | Sold at market value |
| Loss | A cryptocurrency withdrawal which qualify as a loss or an expense |
Considered as a loss (sold for 0 JPY) |
| Fee Only | Reason for the withdrawal is unknown, or ICO reward |
It will be excluded and not shown on the transaction page. If there is a fee associated with the withdrawal, the fee portion alone is automatically reflected（Type:DEFIFEE）*2 |
*1: SENDFEE・・・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".
*2: DEFIFEE・・・It will always be processed as a loss.
3. Unclassified"Risky"
| Transaction Type | Outline |
Impact to PNL Calculation |
| BONUS | Coins that are not Scam token, but rather regular airdrops or coins that have a market value |
Considered as a profit at market value |
| Fee Only | The coin sent to you is a Scam token. *You are responsible for determining whether or not it is a Scam Coin. |
It will be excluded and not shown on the transaction page. |
| Other | Other than above | 4. Unclassified "Unknown transactions" and "Other"DeFi: Causes and Solutions for "Unclassified - Others" |
4. Unclassified "Unknown transactions" and "Other"
If the "Other" transactions cannot be resolved despite selecting the correct transaction type with reference to the following transaction types, please refer to the help page below.
| Transaction Type | Outline |
Impact to PNL Calculation |
| Bonus | A deposit as the result of an airdrop or other type of reward |
・Considered as a profit at market value ・If there is a withdrawal with the same transaction hash, the withdrawal is excluded from the PNL calculation |
| Loss | A withdrawal which qualifies as a loss or an expense |
Considered as a loss (sold for 0 JPY) |
| Pay |
A payment for the purchase of services or goods |
Sold at market value |
| Fee Only |
・The reason for the deposit/withdrawal is unknown and want to only include the fee portion in the PNL calculation ・Transfer within your own accounts ・Bridges(transfer coins to be used on another chain/receive back coins from another chains) |
・The original transaction is excluded ・The fee portion alone is reflected as DEFIFEE (always as a deductible) ・If you have only staked ETH and are holding STETH, no profit or loss will occur, so please select "Fee only" for the history of ETH staking. If you have made transactions using STETH, you will need to upload the history using a custom file. How to record liquidity staking transactions ・Bridge: cryptact treats coins before and after bridging as the same, so select "Fee only." To distinguish by chain, create a custom coin and upload it as a custom transaction. |
| Swap/NFT trade |
・Exchange of one cryptocurrency to another ・Liquidity staking * To select this type, the deposit/withdrawal history must be present in the ASSET MOVEMENTS column. |
Reflected as an exchange of one cryptocurrency to another * The transaction history will show as either Buy or Sell ＊If a single transaction is not combined and is instead split into multiple transactions with deposits (+) and withdrawals (-), all related transaction histories must be selected as "Fee only". You will need to upload the histories separately using a custom file. *When receiving a substitute token at the start of liquidity staking, it is recognized as a swap/NFT sale of the original asset. However, if you choose not to treat it as such, select "Fee only." |
| Harvest | Received an interest-like income from the locked coins | Considered as a profit at market value |
| Add Liquidity | Deposited a coin pair into a liquidity pool |
No impact to PNL at the time of deposit |
| Remove Liquidity | Withdrew the coin pair from the liquidity pool |
・For each coin, determine the type based on the difference in the # of coins deposited and withdrawn deposited < withdrawn ＝> considered as a profit at market value (BONUS) deposited ＞ withdrawn ＝> considered as a loss (Sold for 0 JPY) |
| Enter Staking | Deposited coins for staking |
・No impact to PNL at the time of deposit * If you have a confirmed staking reward from your previously staked coins, the reward is considered a profit (will show as STAKING) |
| Leave Staking | Withdrew coins from staking pool |
・Withdrawn - Deposited => considered a staking reward (STAKING) or a profit at market value ・If the staked coin and the reward coin differ, only consider the staking reward as a profit (STAKING) |
| Enter LP Staking | Deposited LP tokens for staking | ・No impact to PNL at the time of deposit |
| Leave LP Staking | Withdrew LP tokens from staking pool |
・Withdrawn - Deposited => needs to be recognized as a staking reward * We currently do not handle staking rewards for LP tokens. Please manually upload them as custom trades separately. *In cases where "Remove liquidity" and "Leave LP staking" occur simultaneously within a single transaction, selecting "Leave LP staking" will only reflect the gains and losses associated with the "Remove liquidity." |
| Enter Lending | Started lending coins |
No impact to PNL at the time of starting lending |
| Leave Lending | Received back the loaned coins |
Returned - Loaned => considered a lending interest (LENDING) or a profit at market value |
| Borrow | Borrowed coins |
・No impact to PNL at the time of borrowing ・Position in borrowed coins increases |
| Return | Return the borrowed coins |
Borrowed amount - (Book value of the coin * quantity) => considered as a loss or profit |
| Approve | The fee (gas fee) that incurs when a transaction is approved and sent | The fee portion is considered a loss (will show as DEFFEE) |
| Wrap |
The fee portion alone is reflected in the PNL calculation * For details on how wrapped tokens are handled, please refer to this link. |
|
| Unwrap |
The fee portion alone is reflected in the PNL calculation * For details on how wrapped tokens are handled, please refer to this link. |