Crypto Tax Calculator automatically categorizes many transactions with sufficient information. However, complex transactions or those in a grey area of tax legislation may remain uncategorized.
Whether you're an accountant or a frequent user with numerous transactions, you can use blockchain explorers to determine transaction details accurately for proper categorization and reconciliation for tax purposes. Blockchain explorers are invaluable tools for this purpose.
How to find the transaction on the blockchain explorer using Crypto Tax Calculator?
Check the transaction
After importing the data, you can find your transactions (similar to the below images) on the Transactions page and Review page.
Click the TxID or arrow on the right-hand side of the Tx ID will take you to the blockchain explorer (see below). It shows you the details of the chosen transaction.
Check the address
You can also check the source/destination addresses by clicking the arrow on the right-hand side of the source/destination.
This will take you to the blockchain explorer (see below), where you can check all transactions that interacted with this address/contract.
Determine if you need to import the address
If you are unsure if you need to import the wallet address, you can inspect the address by using the below technique.
Step 1: Is it a Contract, Address, or Token?
The blockchain explorer shows if the source is a smart contract (Contract), a wallet address (Address), or a token address (Token).
If it’s a Token
If it’s a Token
In this case, this is not your address and does not need to be imported. The transactions that interact with this token address usually need to be categorized correctly and can NOT be a Send/Receive/Transfer. Check DeFi categories for more details and the discussion below.
Follow the steps below to check if it’s your wallet that needs to be imported.
Step 2: Check the transactions in this wallet.
You should remember some of the transactions you’ve made and be able to recognize your wallet. If you are reconciling for your client, it is better to ask them to check it.
Step 3: Import the address.
If it's your wallet, you can click the address on the transaction in Crypto Tax Calculator and click 'Import Wallet' in the pop-up window to import the wallet.
You can also copy the address and add it on the Integration page.
How to categorize it when the source/destination is not your wallet?
1. Observe the transaction (Tx ID/Txn Hash)
You can typically identify the interacted contract in the 'Overview' tab. In this example, it's
Dopex: Staking Rewards (rDPX/WETH). Transactions associated with this contract are likely related to staking activities. However, please note that the contract's name, 'staking rewards,' doesn't exclusively represent all transaction types. For more information, click on the 'Interacted With (To)' contract/address, which will be discussed in the following sections.
You can also check “Click to see More”.
This will display the function of this transaction. In the example below, the function is 'claim,' which may indicate staking rewards.
Also, on each on-chain transaction that is imported to Crypto Tax Calculator, there will be a small function pill that shows that particular transaction’s function or transaction signature. These pills can be helpful for categorizing transactions. However, be aware that each smart contract uses its own unique functions for different transactions. This means a “mint” for one contract could mean an entirely different action for another. Some functions are also entirely ambiguous and may need further investigation on the blockchain explorer.
Event logs can be found in the Logs tab. There could be multiple logs listed; sometimes, they are useful, but sometimes, none of them would have useful information. Below, the logs show
Transfer, which implies this transaction could be a “staking withdrawal”.
Event logs can be located in the 'Logs' tab. There may be multiple logs listed, and while some are useful, others may not contain valuable information. In the example below, the logs display
Transfer, suggesting that this transaction could be a 'staking withdrawal'.
2. Observe the source/destination
As mentioned previously, we can also find information from the source/destination address you interacted with. Clicking the source/destination address in Crypto Tax Calculator or the 'From/To' address on the blockchain explorer will take you to the page that looks similar to the below image.
As explained previously, we need to check if this is a smart contract (Contract), a token contract (Token), or a wallet address (Address). We will explain how to inspect the contract information below.
a. Contract Overview
Some smart contracts show the contract name where the functions can be identified. For example, the one below shows ‘Staking Rewards’. The transactions relevant to this contract are most likely Staking Deposit, Staking Rewards, and Staking Withdrawal.
b. Transactions Tab
You can also find the transactions relevant to this contract and get a better picture of what the transaction could be. In this example, the transactions seem relevant to staking. The transactions that have interacted with this contract can be categorized accordingly.
For more details on how to categorize transactions and the definition, please check our guides: