Tax-Report for Bitcoins and other Digital Currencies

Margin Trades

The correct way to calculate margin trades is to import or add them as profit or loss. Unfortunately, many exchanges do not transmit margin trades as profit/loss but as regular trades instead.
This can lead to conflicts with a conventional tax calculation, as with margin trades usually more assets are sold (shorted) that available in an account.

If you do not have margin trades, skip this setting.

In case your account contains margin trades which have not been entered as profit/loss, you can enable the 'Calculate margin trades' checkbox.
Doing this, if there is no suitable purchase pool left for a sale, the system also searches and calculates purchases that have taken place after the sale.

Please note that activating the checkbox (especially in the case of incorrectly imported or missing transactions) can lead to tax reports not being calculated according to the selected tax rules because purchases that have taken place after a sale can be used to determine the PnL.

If warnings occur despite this option, you have not entered all of your trades correctly.

Show/hide warnings for empty FIAT purchase pools

By default, a warning is displayed when assets are purchased in a foreign FIAT currency that does not exist in the account.

Example 1: Show warnings (checkbox enabled)
Account currency is USD.
Selling 1 BTC for 5000 GBP will result in a warning if there are no 5000 GBP in the CoinTracking account to sell.

The system will assume a purchase of 1 BTC for 0 USD.
This will result in the total value of 1 BTC (at the time of the transaction in USD) being declared as a profit.

To remove the warning, the purchase of the 5000 GBP must be entered in CoinTracking before the selling date.


Example 2: Hide warnings (checkbox disabled)
Account currency is USD.
Selling 1 BTC for 5000 GBP will not result in a warning even if there are no 5000 GBP in the CoinTracking account to sell.

The system will assume an imaginary transaction of 5000 GBP purchased at the market value immediately before the sale.
This will result in exactly the same cost base and proceeds value. The declared profit will be 0 USD.

The cost base of the BTC will be declared as 5000 GBP (converted to USD) at the time of the BTC purchase.

Calculate profits and losses for all foreign Fiat currencies

By default, gains and losses on foreign currencies are treated in the same way as gains and losses on other currencies.

In some cases, however, such as the HMRC UK tax, this is not the case. Foreign currency gains/losses are not relevant here and should therefore be excluded.