Overview
In Crypto Tax Calculator, the Send, Receive, and Transfer categories are used exclusively for transactions where both the source and destination belong to you and are imported into the app.
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 both sides. |
Transactions labelled as "Send" and "Receive" may not automatically group as a transfer if they fail to meet the system's auto-grouping criteria. This can prevent the cost basis from carrying over, potentially causing "Missing Purchase History" issues. As a result, capital gains calculations may assume a $0 acquisition cost, leading to incorrect tax reports. Follow the below sections to ensure accurate reports.
Note: If your cost-basis tracking method is set to Universal, unmatched Send and Receive transactions will not impact your cost basis. However, they may affect your Inventory Report balances or lead to incorrect calculations if you switch to the By Wallet and Exchange cost-basis tracking method.
How to Ensure Transfers Are Grouped Correctly
Step 1: Ensure to import your wallet and only your wallet
Ensure that you've imported all transactions for all financial years. Missing transaction history will cause issues with transfer grouping and balance discrepancies. Import your wallet/exchange from the Accounts page:
For more details on how to import your data, check our guides:
Step 2: Ensure no 'send' or 'receive' transactions
For unmatched Send or Receive transactions, you can use the magnifier icon next to the date to filter and find the corresponding transaction
Categorise the transaction correctly.
After categorising and waiting for the report to refresh successfully, they should group as a Transfer.
Conditions for Grouping Send and Receive as a Transfer
A transfer transaction correctly transfers the balance and cost basis from one account to the other. If the Send and Receive transactions do not group, you can check the below requirements:
Timestamp |
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Amount | The amount received must be similar to the amount sent (5% tolerance accepted). |
Currency | They need to be in the same currency. |
Source and Destination |
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Grouping Assistant (Beta)
The Grouping Assistant (Beta) helps identify why transactions aren’t grouped.
Select the two transactions.
Click Command at the bottom of the page or use the shortcut Command + K.
Choose Grouping Assistant (Beta) from the options.
Step 3: Manually Record a Transfer if needed
If the transactions don’t group automatically despite meeting the requirements, you can manually record the transfer as a workaround. Click the “+ Add Transaction” button on the Transactions page to create a Transfer transaction and ensure the cost basis and balances are calculated correctly.
After adding this new Transfer transaction, ensure you “ignore” the unmatched Send and Receive.
✨ CTC Magic ✨ Toggles for Transfer Transactions
To access these features, go to Settings > Tax > CTC Magic. These toggles offer powerful automation for managing transfer transactions more accurately.
Automatically Generate Counterparts of Unmatched Transfers
This feature addresses situations where a transfer between two imported sources has data for only one side—either the outgoing "Send" or the incoming "Receive." It is designed to handle limitations in provided data. For more information, see here.
Auto-Detect Fees for Transfers
This feature creates a fee automatically if there’s a discrepancy between sent and received amounts in grouped transfers or bridges. If you manually edit a transaction’s fee, CTC Magic will keep these changes, even if you turn the auto-detect feature on or off. Manually set fees stay as specified, unaffected by the auto-detect setting. For further details, refer to this article.