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capgains: updates

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Simon Michael
2025-12-22 15:33:07 -10:00
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src/Capital-gains-reporting.md
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@@ -39,10 +39,10 @@ There are two kinds:
Bitcoin.Tax, Cointracker, Coinledger, Koinly, Summ, TokenTax are some of these. While convenient, online calculators add rather serious privacy risk: when they are hacked or infiltrated, potentially your entire past, present and future cryptocurrency activities can be seen and analysed. Bitcoin.Tax, Cointracker, Coinledger, Koinly, Summ, TokenTax are some of these. While convenient, online calculators add rather serious privacy risk: when they are hacked or infiltrated, potentially your entire past, present and future cryptocurrency activities can be seen and analysed.
- Offline cryptocurrency tax calculators.\ - Offline cryptocurrency tax calculators.\
These tend to be less featureful but more private, so we focus on them here. Some of them are: These tend to be less featureful but more private. Some of them are:
- [BittyTax] - UK and US variants (can do wallet-based cost tracking by using multiple configs) - [BittyTax] - UK and US variants (can do wallet-based cost tracking needed for US, by using multiple configs)
- [rotki] - freemium, featureful, does not support US yet (wallet-based cost tracking, <https://github.com/rotki/rotki/issues/2438>) - [rotki] - freemium, featureful (does not support US yet, <https://github.com/rotki/rotki/issues/2438>)
- [RP2] - does not support US yet (<https://github.com/eprbell/rp2/issues/135>) - [RP2] - does not support US yet (<https://github.com/eprbell/rp2/issues/135>)
[bittytax]: https://github.com/BittyTax/BittyTax [bittytax]: https://github.com/BittyTax/BittyTax
@@ -77,7 +77,7 @@ For each PTA account representing a real-world cryptocurrency wallet,
Here, "wallet" has a broad meaning: Here, "wallet" has a broad meaning:
- a self-custodied wallet on a blockchain - a self-custodied wallet on a blockchain
- or the wallet on an exchange - or a wallet on an exchange
- or each individual BIP 32 account within a multi-account wallet - or each individual BIP 32 account within a multi-account wallet
- or other places where a balance is held, like a liquidity pool or smart contract - or other places where a balance is held, like a liquidity pool or smart contract
@@ -87,6 +87,28 @@ Ideally, you could export the double entry data directly to the tax calculator,
Like the above, but move the data directly from your real-world wallets to the tax calculator, without involving any accounting app. Like the above, but move the data directly from your real-world wallets to the tax calculator, without involving any accounting app.
The tax calculator may be able to automate some or all of the exporting/transforming/importing; otherwise it must be done manually. The tax calculator may be able to automate some or all of the exporting/transforming/importing; otherwise it must be done manually.
## Lots
In the PTA world at least,
we call an amount and its cost basis (original acquisition date and cost) a "lot".
## Disposal order
Disposal is when you get rid of some quantity of an asset,
eg by spending it, giving it as a gift, or trading it for something else.
Sometimes lots are required to be disposed of in a certain order, based
on their original acquisition date and/or cost. These include:
- FIFO - first in first out
- LIFO - last in first out
- HIFO - highest cost first out
- LOFO - lowest cost first out
- SpecId - specific identification of lots
Sometimes lots are given the (weighted) average cost of all lots of that asset.
In this case, tracking disposal order is not needed (as all lots have the same cost).
## Country notes ## Country notes
General notes on local rules (again, unvetted best understanding): General notes on local rules (again, unvetted best understanding):
@@ -97,13 +119,6 @@ In the USA, calculating cryptocurrency gains requires:
- tracking the acquisition date, cost, and wallet of every purchase/acquisition over your lifetime - tracking the acquisition date, cost, and wallet of every purchase/acquisition over your lifetime
- tracking these across transfers/splits/merges/disposals - tracking these across transfers/splits/merges/disposals
- disposing them in a required order, such as: - disposing them in a required order, such as:
- FIFO - first in first out
- LIFO - last in first out
- HIFO - highest cost first out
- LOFO - lowest cost first out
- SpecId - specific identification of lots
- and thereby calculating the capital gains or losses. - and thereby calculating the capital gains or losses.
Before tax year 2025, disposal order was determined with "universal cost tracking" - Before tax year 2025, disposal order was determined with "universal cost tracking" -