I noticed that Accounting called the transfer between different wallet a sell. For example, I was transferring DOT coins from Binance.US to Ledger wallet. Accounting records this as a ‘sell’ from the Binance wallet. And deposit ‘from unknown’ to the Ledger wallet. I could not change the record manually since both wallets are connected by APIs. And, this was true for the ones that I am adding manually. I guess this has some implications to the Tax preparation since Accounting record this as ‘sell’ although I simply transferred them into my another wallet, not materializing the ‘sell’. Am I missing something? How can I fix this problem of wrong ‘sell’ records?
At first when the transactions are imported it will show as transfers or sells to/from unknown wallets, however the software has the ability to understand it as a transfer between (2) wallets you own. Accointing terms these inter-wallet transactions as an ‘internal’ transaction.
When looking at your dashboard, in the top right there should be a button that says ‘Review’. When you click it, you are brought to a page with a series of steps that are used to review & correct errors that the automated service has detected. Clicking Step 2 at the top brings you to a page where Accointing attempts to identify these internal transactions based on the timing of the withdraw/deposit from each wallet and the quantity being moved. If the identified transaction is supposed to be internal, you can check it off and click approve so it will merge the deposit & withdraw transactions into a single internal transaction without being classified as a sell. It does have a limit of 6hrs between the deposit & withdraw so if the timestamps vary by more than that you won’t be able to classify it as an internal using the steps above. Also, the gas fee will still be marked as a sell. You can see why it does this here: 2021 USA DeFi Crypto Tax Guide - The Hub: Crypto and Bitcoin Tax Blog | ACCOINTING.com