On page 21 of the National Tax Agency's "Tax treatment for crypto assets (FAQ) - Japanese only", it is stated that you are allowed to adjust the acquisition price of the crypto asset sold to be an amount equivalent to 5% of the sale price. This setting allows you to benefit from this.
When you enable this setting, from the fiscal year that you selected onwards, Cryptact compares the book price and 5% of the sales price of each coin and uses whichever is higher as the acquisition cost in the PNL calculation.
EXAMPLE: 1 AAA coin was purchased at 1,000JPY. Then later it was sold at 1,000,000JPY.
[PNL without using 5% adjusted cost basis]
・Book price for AAA=1,000JPY
[PNL using 5% adjusted cost basis]
・Book price for AAA=1,000JPY but it is smaller than 50,000JPY (1,000,000JPY×5%), hence adjust it to 50,000JPY
For transactions where 5% of the sales price was used as the acquisition price, it is indicated on the Transaction details screen.
You can use the "STATUS" filter to select only the transactions where 5% adjusted cost basis was used.
[How To Configure]
Go to the Ledger tab and click the "Settings" icon located to the left of the "Add transactions" button.
In the "Use 5% adjusted cost basis" under the Advanced settings, select which fiscal year to enable this setting from and click "Update".
* 5% adjusted cost basis will be used for only calculating PNL for the selected fiscal year and onwards, and NOT for prior years.
* PLEASE NOTE
As you may be aware, Cryptact cannot automatically handle rebase and redenomination where the quantity and the book price change significantly. As such, users need to manually handle these via uploading custom trades. Please be aware that if you represent redenomination using a single coin, Cryptact cannot use 5% adjusted cost basis for PNL calculation.
Please take the necessary measures to avoid this issue, e.g.prepresenting redenomination using two different coins for before and after the redenomination. If you are representing redenomination using a single coin and if you have "Use 5% adjusted cost basis" enabled, the PNL calculation may be incorrect.