Send, Receive, and Transfer in CryptoTaxCalculator are the categories that should only apply to the transactions when both source and destination belong to you and are imported.
If both the source and destination within the transaction belong to you (i.e., you have custody), then you should only ever be using the Send, Receive, and Transfer categories.
Send
An outgoing transaction goes from your wallet/exchange/account to another, where you maintain ownership.
Receive
An incoming transaction comes from your wallet/exchange/account to another, where you maintain ownership.
Transfer
A send and a receive transaction grouped as a transfer, and you maintain ownership on either side.
Why is this important?
When the Send/Receive/Transfer transactions happen, the cost basis is transferred from the initial acquisition cost (that is, when the token in question was first acquired from an external source, often a ‘buy’ transaction). Hence, incorrectly categorized Send or Receive will cause a Missing Purchase History issue, which increases your capital gains as the cost basis is not captured (treated as $0 cost buy).
The below transaction is an example. As the “A friend” wallet is not imported, there is no cost basis for this 2 ETH.
To resolve this issue:
If the “A friend” wallet belongs to you, you need to add the wallet to the Integrations page.
If the “A friend” wallet does not belong to you, you can not use the “Receive” category, and it needs to be categorized accordingly.
1. Ensure to import your wallet and only your wallet
You can import your wallet/exchange from either the Integrations or Tips page:
On the Integrations page
Or click the address, and it will lead you to the Integrations page.
Note: The “Identify address” feature makes it easier for you to recognize the addresses when categorizing the transactions. It does NOT mean you have imported it.
For more details on how to import your data, check our guides:
2. Fix a Send/Receive suggestion
When you see one side (a Send or a Receive) of the transaction with a yellow mark, you should find the other side of the transaction and categorize them correctly. You can use our 'Date' filter on the top-left corner to that date to find it.
Once you find the other side of the transaction, click three dots on the right-hand side and categorize it correctly.
Once the report refreshes successfully, they should group as a Transfer.
Send and Receive should not exist on the Reports page
For the balance and cost base to be transferred correctly, a Send and a Receive will be grouped as a Transfer. If you have a Send and/or Receive, and they are not grouped this will cause balance issues. So if you see the Send and Receive transactions exist on your Reports page, it is most likely that your balances or capital gains are not calculated correctly.
3. Send and Receive don’t group as Transfer
A Transfer transaction makes the balance and cost basis correctly transfer from one wallet to the other. If the Send and Receive transactions do not group, you can check the below requirements:
Timestamp
When the Send is before the Receive, we provide a 12-hour window for the transfer.
When the Receive is before the Send, we only allow a 1-hour window to avoid incorrect matching.
Amount
The amount received needs to be similar to the amount sent (5% tolerance accepted).
Currency
They need to be in the same currency.
Source and Destination
The Send and Receive transactions need to have the same source and destination.
If the source and the destination are on different blockchains, you need to use the Bridge category.
Create a Transfer
Occasionally, the transactions would not group even when all the requirements were checked. You can use the “ + Add Transaction” button on the Transactions page to add a Transfer transaction.
Select “Transfer” and follow the prompt to add the transaction.
After adding this new Transfer transaction, ensure you “ignore” the unmatched Send and Receive.
4. Can not find the other side of the transaction
Sometimes, when you check the transactions on that day, you can not find the other side of the transaction. This is usually due to missing data. If you are 100% sure you’ve followed the above steps and imported all your transactions, you can either create a Transfer or create the other side of the transaction for them to match by following the below steps.
a. Ensure the details are correct on that one-side transaction.
b. Duplicate the transaction by clicking three dots on the right-hand side of the transaction.
c. A duplicate transaction will be created. Click on the transaction category itself on the left side.
d. Choose to switch to the other side, either to View Incoming Categories or View Outgoing Categories. Select the corresponding 'send' or 'receive'.
e. Once the report refreshes successfully, they should group as a Transfer.
