How Accurate Is Coinpanda's Crypto Tax Reporting for Complex Transactions?

Hey everyone,

I have been using Coinpanda for crypto tax reporting; and while it works well for standard transactions: I am curious about how accurate it is with more complex scenarios like staking, yield farming; and NFT trades: I know the platform supports these types of transactions,… but can it fully handle all the intricacies without missing anything: ?? I have had a few instances where I felt the calculations didn’t quite match my expectations, especially with DeFi activities:

For those of you who’ve dealt with a lot of different transaction types, what’s your experience with Coinpanda’s accuracy: ?? Do you rely on it entirely for your tax reports, or do you double–check certain areas manually: ?? Also, how does it compare with other platforms you’ve tried: ??

Lastly, has anyone faced any issues with Coinpanda’s support team when dealing with discrepancies or regulatory updates: ?? I am interested in hearing how helpful they are in resolving any concerns: I searched on the web about this and got these results How to ensure accuracy of tax calculations | Coinpanda Help Center CISSP it helped me alot but looking for more help.

Looking forward to your insights…! :roll_eyes:

Thanks

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Hi James
In terms of being able to handle such transactions, the primary issue you will run to is that of missing token prices.

We mitigate this for the most part, by deriving the token value from other tokens in the transactions. Such as when one token is exchanged for another, we can derive the value of the received token from the one that was sent.

So even if we don’t have the price for that received token, we are able to use that derived value in any subsequent transactions where that token is being sold/disposed. This is also applied to NFT transactions.

The next problem you might run into then, is that the API integration might not always be able to identify which token transfers ‘belong together’. That can result in the transactions related to an NFT purchase being imported as separate Send and Receive transactions. And in that event, the NFT price will not be derived from the other token.

The reason for why we can’t always identify this is a bit complicated, but it is basically because various protocols record their transactions in different ways, which means we can not implement a universal method for identifying transactions. For that matter, our API integrations are constantly being updated to accomodate for various protocols, to improve the accuracy of imported transactions

To deal with the issue of separately imported transactions, you could make use of the “Merge” feature. If you select both the Send transaction and the Receive transaction, the merge option will pop up, which you can then use to combine those transactions into a single Trade transaction. In that Trade transaction, the token value of the received token can then be derived from the sent token, thus solving the issue of the missing price.

Another option is to directly edit/input the value of the token. For best results, it is recommended to edit the value of your earliest acquisition of that token, so that the value can carry through to subsequent transactions involving that token

You can also consult the Cost Analysis tab to locate which exact acquisitions/transactions are related to the transaction you are looking at. You can find this by clicking on a transaction to open the transaction details panel, and then clicking the Cost Analysis tab. This will display a list of each related acquisition and their individual costs and resulting gains

If you are dealing with issues related to missing prices, you will see some acquisitions with 0 cost. That means there was an issue with deriving the value of that token

So to summarize, if you are dealing with complex transactions, you should definitely spend some time to check for issues related to missing prices. You can use the “Missing Price” filter on the Transactions page as well

If you need help with something specific, you can always send a message to the support team via the Chat function. And you can import all your data on the free account, without any restrictions

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