This page provides guidance on the methods for calculating profits and losses for each type of transaction.
How we handle the trading fees on cryptact:
- Trading fee at the exchanges (PNL: capital gain/loss) : based on the opinion of tax accountants, cryptact processes transaction fees based on the fee currency. For more details, please refer to the help page 3. Fee handling.
- Trading fee at margin trade (PNL: capital gain/loss): when cryptact can recognize fees from the transaction history, it records them as increases or decreases in the fee currency and includes them in the gain and loss calculation.
- Transaction fee at DEX: based on our interpretation, cryptact records the fee as: Cost basis x Number of coins used for fees = Capital loss
Transactions types on cryptact:
Please refer to the following for each transaction type and their respective processing methods on the cryptact transaction page.
|
No. |
Transaction type |
How it is processed |
PnL event? |
Examples |
|
| 1 | BUY | Buy at the price *1 on the transaction date and time | × | - | Buy crypto on exchanges/Peer to peer trading |
| 2 | SELL | Sell at the price *1 on the transaction date and time | ✔ | Capital gain/loss |
Sell crypto on exchanges/Peer to peer trading |
|
3 |
BONUS |
Profit recognized at the price *1 on the transaction date and time |
✔ |
Income | Airdrop |
| Income | Campaign reward/Referral reward | ||||
| Capital gain | Profits from cryptocurrency-denominated margin trading |
||||
|
4 |
LOSS |
Loss recorded at the cost basis*2 |
✔ |
Income (negative) | - |
| ✔ | Capital loss |
Losses from cryptocurrency-denominated margin trading |
|||
| 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 or cost/expense. |
| 6 | STAKING | Profit recognized at the price*1 on the transaction date and time | ✔ | Income | Staking reward |
| 7 | LENDING | Profit recognized at the price*1 on the transaction date and time | ✔ | Income | Receive lending interests |
|
8 |
LEND | Locks the coins in the stated quantity | × | - |
Lend coins to friends or exchanges |
|
9 |
RECOVER | Unlocks the coins in the stated quantity | × | - | Receive back the coins that were lent to lending services |
| 10 | MINING | Profit recognized at the price*1 on the transaction date and time | ✔ | Income | Receive a mining reward |
| 11 | SENDFEE |
The following processes are applied to coins used for fees: 1. Generate a transaction to sell the coins used for fees at market value and record the profit or loss as a Capital Gain/Loss. 2. Record the number of coins used for fees × market value as an Expense. |
✔ |
1. Capital gain/loss
2. Expense
|
Pay a transfer fee |
| 12 | PAY | Sell at the price*1 on the transaction date and time | ✔ | Capital gain/loss | Pay for goods/services in cryptocurrency |
| 13 | BORROW |
Incorporate the price as of the recorded date into the cost basis*2 |
× | - | Borrow coins |
| 14 | RETURN |
PNL is calculated as (price at the time of borrowing - cost basis) x quantity |
✔ |
Capital gain/loss |
Return the borrowed coins |
| 15 | EXPENSE |
The following processes are applied to coins used for fees: 1. Generate a transaction to sell the coins used for fees at market value and record the profit or loss as a Capital Gain/Loss. 2. Record the number of coins used for fees × market value as an Expense. |
✔ |
1. Capital gain/loss
2. Expense |
Exchange shutdown, software purchases, etc. (subject to the tax office to confirm those can be treated as expenses) |
| 16 | LEVELUP | Add to the cost basis *2 of NFTs | × | - | Level-up in STEPN |
| 17 | CASH | Loss in fiat currency | - | Expense | Purchasing goods/services with fiat currency |
*1 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 Cost basis: The cost basis is determined based on the selected calculation method.
*3 Quantity: Volume of the coin.
Transactions types on the cryptact (DeFi):
Please refer the below help page for more details.
What is cryptact’s DeFi Feature? (Reference: How to use DeFi functions)
When you add a wallet address to cryptact, the transaction history within that wallet address is reflected in cryptact for the networks that cryptact supports. The system automatically identifies and reflects the transactions it can recognize, and automatically calculates profits and losses. However, transactions that cannot be automatically classified or non-DeFi deposit/withdrawal transactions are categorized as "Unclassified," requiring manual identification.