General

Add/Edit Tags

By
Timmy
on
March 31, 2021

What are tags and how do you use them?

The "Add/Edit Tags" are tools to help the user define different transactions, the result of the tag is going to have an impact on the users tax outcome. The different tags are going to help the user to set up every transaction in the right way. Some of the tags are going to make a transaction a taxable event which means that you will be liable to pay tax. In order to avoid unnecessary tax events the user can use the "Add/Edit Tags" and change the tax events.

For example; if you have donated your crypto to a charity, it's either going to count as a withdrawal or a sell transaction, which can be a taxable event. To avoid the taxable event you can use the "Add/Edit Tags" and tag it as a donation, because it was a donation which is not considered a tax event.

How we define different tags and transaction types

Transaction type:

  • Buy: buying crypto for fiat or crypto.
  • Sell: selling crypto for fiat or crypto.
  • Exchange: sending crypto out of your wallet, service or an exchange.
  • The tax treatment for Exchange is going to be treated as a non taxable event.
  • Withdrawal: sending crypto out of your wallet, service or an exchange.
  • The tax treatment for Withdrawal is going to be treated as a sale.
  • Deposit: receiving crypto into your wallet, service or an exchange.
  • The tax treatment for Deposit is going to be treated as a purchase at market price at the time of the transaction.
  • Send: sending crypto out of your wallet, service or an exchange.
  • The tax treatment for Send is going to be treated as a sale.
  • Ignore: ignoring the transaction.

Tag types:

  • Spending: buying or spending crypto for goods and services (Taxable event).
  • Transfer: transferring or sending crypto to another wallet (No taxable event).
  • Lost: stolen or lost crypto (No taxable event).
  • Gift: receiving crypto or a token as a gift (No taxable event).
  • Donation: donating or giving away a cryptocurrency (No taxable event).
  • Airdrop: receiving crypto or a token as an airdrop or gift (No taxable event).
  • Fork: receiving crypto or a token as a fork or gift (No taxable event).
  • Mining: earning crypto or a token for mining (Taxable event).
  • Reward: earning crypto or a token for doing a favor or work (Taxable event).
  • Other income: earning crypto or a token for other reasons (Taxable event).
  • Realized profit: treating the transaction as a profit (Taxable event).
  • Loan out: sending liquidity to a liquidity provider (Taxable event).
  • Loan in: receiving liquidity from a liquidity provider (Taxable event).
  • Interest: receiving a payment from a lending platform (Taxable event).
  • Internal Trx: transferring crypto between your own wallet (No taxable event).
  • Swap: changing crypto for another crypto (Taxable event).

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