From 930bfc1f8a6c7ce7e00971653d9e5f2720ea5d1e Mon Sep 17 00:00:00 2001 From: scoobybejesus Date: Sat, 5 Oct 2019 21:14:45 -0400 Subject: [PATCH] Improved formatting and readability. --- InputFile_CSV.md | 21 ++++++++++++++------- 1 file changed, 14 insertions(+), 7 deletions(-) diff --git a/InputFile_CSV.md b/InputFile_CSV.md index cfbc0ea..390ed1e 100644 --- a/InputFile_CSV.md +++ b/InputFile_CSV.md @@ -34,18 +34,22 @@ Some account reports reflect *all* movements in *every* lot in *every* account, After the reports have been printed/exported, the software stops running and the memory is abandoned/cleared. Once the software has run, you rely on the reports to tell you everything you need to know. -Keep in mind that aggregating one's entire crypto history is very important! -Cryptocurrency users **cannot** rely on exchanges to provide them with gain/loss information. -At most, an exchange will be able to provide the gross value of their transactions (what `cryptools` calls `proceeds`). +### Why should I go to the trouble? Think about this: exchanges have **no way** to track the cost basis of their users' holdings, nor can they verify how the funds they disburse are used. -Consequently, exchanges will treat all trades and all disbursements as pure (taxable) gains. +At most, an exchange will be able to provide the gross value of their transactions (what `cryptools` calls `proceeds`). +If exchanges provide a user's trading activity to the IRS, for example, gross value is all they can provide. +Consequently, unless you prove otherwise, the IRS will assume all trades and all disbursements are taxable income/gains. + +With that in mind, aggregating one's entire crypto history is very important! +Cryptocurrency users **cannot** rely on exchanges to provide them (or the IRS) with gain/loss information. +This means it is **up to users** to keep track of their cost basis. -This means it is **up to users** to keep track of their cost basis! By aggregating all your cryptocurrency activity, this software enables you to track **and prove** your cost basis. Using these reports, you can walk back in time to track the cost basis used in every gain/loss calculation. (If you paid cash for any cryptos, proof becomes much more difficult, but at least you have an otherwise complete ledger.) +The hurdle, of course, is preparing the input file. ### A final note before digging in @@ -67,6 +71,9 @@ It is **required** in order to properly calculate income/expense/gain/loss. 4. Proceeds must have a period as a decimal separator (1,000.00 not 1.000,00) and must not contain the ticker or symbol (USD or $). 5. Only home currency accounts can have negative balances. Crypto accounts may not go negative at any time. +As you can see, most of the rules can generally be ignored. +In fact, the only tricky field is the `proceeds` column, but even that becomes second nature soon enough. + Keep an eye out for a related project that creates input file pro formas from exchange reports, thus automating some of the process. ## Visual representation @@ -94,7 +101,7 @@ In order to be successfully imported, the CSV input file **must** be in a prescr --- -#### CSV file components - What they are +### CSV file components - What they are ##### Columns @@ -177,7 +184,7 @@ These transactions are oversimplified on purpose. For example, a loss will not be recorded until "spot" holdings are used to pay off loans. Until "spot" funds are spent to pay off the margin loans, it's simply an [unrecorded] unrealized loss. -#### CSV file components - Data types, restrictions, and important points +### CSV file components - Data types, restrictions, and important points ##### Columns