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 going from your wallet/exchange/account to another, where you maintain ownership.
Receive
An incoming transaction coming 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?
CryptoTaxCalculator does not capture the cost basis 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 negative balance 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 1.869 ETH.
To resolve this issue:
If the “A friend” wallet belongs to you, you need to import it.
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 Imports or Reconciliation page:
On the Imports page
On the Reconciliation page (under Correct - Incorrect Sends/Receives)
Note: The “Name 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. Click the date on the top-left corner will take you to that day, where you can find the corresponding transaction.
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.
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 three dots on one of them and select “Edit”.
d. Switch the transaction direction and save.
e. Once the report refreshes successfully, they should group as a Transfer.
