Many CryptoBooks users ask us, "Why can't I import only the most recent transactions into CryptoBooks?" or "I have already declared the previous years, so what is the point of importing my entire transaction history?"
The necessity of having the complete transaction history, from the very beginning of your cryptocurrency activity, is due to the fact that without the older transactions, it would be impossible to correctly perform the calculations required for a complete declaration.
Additionally, almost always, the absence of historical data would increase the taxes the client has to pay.
Here are the main reasons for the necessity to always import the entire transaction history.
Accurate Purchase Prices: Without the historical prices of tokens, the software would have to set their purchase price to 0. When sold later, the entire sale proceeds would be considered capital gains, instead of just the difference between the purchase and sale prices.
Correct Wallet Balances: By importing transactions only partially, the first operation on a wallet or exchange could be a withdrawal. In this case, you would face an erroneously negative or incorrect balance.
Avoiding False Capital Gains: Not fully importing the transaction history could result in false capital gains due to the lack of transfer transactions between different sources.
Example of Incorrect Capital Gains Calculation Due to Partial Import
First transaction on 20/09/2022 I purchase 1 BTC at a chargig price of 20.000 EUR
Second transaction on 01/02/2023 I purchase 1 BTC at a charging price of 30.000 EUR
Third transaction on 01/05/2023 I sell 2 BTC at a price of 80.000 EUR (1 BTC = 40.000 EUR)
Correct Capital Gain Calculation 80.000 - (30.000 + 20.000) = 80.000 - 50.000 = 30.000 EUR
Capital Gains Calculation if Only 2023 Transactions Were Imported In this case, we would be certain of the purchase price of 1 BTC (the one bought at 30,000 EUR in February 2023), but not knowing the price of the previously purchased BTC, we would have to assume the remaining portion was bought at 0 EUR. Thus, the calculation would be: 80.000 - (30.000 + 0) = 80.000 - 30.000 = 50.000 EUR, resulting in a capital gain 20.000 EUR higher than in reality. |