Gains & Losses
Gains & Losses
Section titled “Gains & Losses”Gain and loss calculations are the primary output of the cost basis engine. They determine the tax-relevant amounts for each disposal event and the mark-to-market position for assets still held.
Where Gains & Losses Appear
Section titled “Where Gains & Losses Appear”Gains and losses are reported through several views:
| Sidebar Location | Content |
|---|---|
| Reports → Income Statement | Income statement including realized gains/losses and income |
| Tax → Disposals | Tax disposal schedule — detailed per-disposal gain/loss (available on qualifying plans) |
| Balances → Rollforward | Rollforward showing movement from opening to closing balance |
| Balances → Lots | Lot-level detail showing acquisition cost and remaining quantity |
Realized Gains & Losses
Section titled “Realized Gains & Losses”A realized gain or loss occurs when you dispose of an asset — selling it, trading it for another asset, or using it to pay for goods or services.
Calculation: Proceeds − Cost Basis = Realized Gain (or Loss)
The proceeds are the FMV of what you received at the time of disposal. The cost basis is determined by the selected method (Historic FIFO, Historic Weighted Average, HIFO, LIFO, etc.).
Example (Historic FIFO): You bought 2 ETH at €1,800 (January) and 3 ETH at €2,400 (March). You sell 1 ETH in June at €2,600. Under FIFO, the oldest lot is used: Proceeds €2,600 − Cost €1,800 = €800 realized gain.
Example (Historic Weighted Average): Same purchases. Weighted average cost = (2 × 1800 + 3 × 2400) / 5 = €2,160. Selling 1 ETH at €2,600: Proceeds €2,600 − Cost €2,160 = €440 realized gain.
Unrealized Gains & Losses
Section titled “Unrealized Gains & Losses”Unrealized gains represent the paper profit or loss on assets you still hold.
Calculation: Current FMV − Cost Basis = Unrealized Gain (or Loss)
These are computed at any point in time for reporting purposes. Under the FMV cost basis method, unrealized gains are recognized in the income statement. Under historic cost methods (Historic FIFO, Historic Weighted Average), they are informational only.
Tax Disposals
Section titled “Tax Disposals”The tax disposals view under Tax → Disposals (available on qualifying plans) provides:
- Every disposal event with calculated gain/loss
- Lot matching showing which acquisition lots were used
- Holding period for each disposal (short-term vs. long-term)
- Summary totals for tax reporting
- Export in formats required by tax authorities
Holding Period Classification
Section titled “Holding Period Classification”Many jurisdictions distinguish between short-term and long-term capital gains:
| Jurisdiction | Short-Term | Long-Term | Threshold |
|---|---|---|---|
| United States | Ordinary income rates | 0%/15%/20% | 1 year |
| Germany | Taxable | Tax-free | 1 year (with €600 exemption) |
| Australia | Full rate | 50% CGT discount | 12 months |
| Portugal | 28% | Tax-free | 1 year |
CryptaCount tracks acquisition dates at the lot level and classifies gains based on the workspace’s jurisdiction profile.
Income Events
Section titled “Income Events”Some transaction types generate income rather than capital gains:
| Type | Treatment | FMV at Time of Receipt |
|---|---|---|
| STAKING_REWARD | Income | Yes — recorded as income at receipt FMV |
| MINING_REWARD | Income | Yes — recorded as income at receipt FMV |
| VALIDATOR_REWARD | Income | Yes — recorded as income at receipt FMV |
| AIRDROP | Income (in most jurisdictions) | Yes — recorded at FMV of airdrop |
| INCOME | Income | Yes |
| YIELD_CLAIM | Income | Yes — DeFi yield at claim time |
The received assets enter the cost basis pool at the FMV recorded as income. If later disposed, the gain/loss is calculated from that income-recognized cost basis.
Method Comparison
Section titled “Method Comparison”You can compare gains outcomes across different cost basis methods. This is valuable for:
- Tax planning — Which method produces the most favorable result where the jurisdiction allows a choice?
- Sensitivity analysis — How much does the method choice affect total gains?
- Audit evidence — Demonstrating that the selected method is reasonable
Reports
Section titled “Reports”Navigate to Reports in the sidebar to generate the key financial reports:
- Reports → Income Statement — Revenue, expenses, gains/losses, net income
- Reports → General Ledger — Full journal entry detail
- Reports → Trial Balance — Account balances at a point in time
Each report can be filtered by date range, wallet, and asset, and exported as CSV or Excel.