OTC sale, how to?

For simplicity will use some fake numbers (can’t remember the exact numbers off hand)
In 2014 a friend asked me to buy them 2BTC for $100 each. I purchased them hand-to-hand using cash. Then I held them on behalf of the friend until 2018 when they asked I send them to their own wallet. The transaction of me purchasing them in 2014 is no where. The transaction of me sending them the 2BTC shows up in Accointing. How should I classify this? When I select OTC I get the following screen
image

You just need to choose in the “Select exchanges” field, the exchange or wallet where those 2 BTC are currently located

then, click on Next and you’ll confirm that the OTC trade is “paired up” with that transaction:

When I open the Associate OTC trade window it shows no entries, no matter the exchange chosen. I have only one exchange present. The order in question involves the original purchase of BTC in 2014 using cash in-person transaction.

I think I’m missing a step from your answer. How do I make sure when I go to Associate OTC trade that the transaction from 2014 shows up. Should I create a new exchange for “in person” transactions and manually create a entry in that exchange for the 2014 trade?

your OTC trade should match with a transaction on an exchange or wallet. that’s how the platform will be able to determine where the OTC transaction went to.

Hi, I am having a very similar situation (Germany):

Assuming I sold BTC in year Y and received the money also in year Y. However, the BTC was not transferred until the next year Y+1:

In Accointing, I have created a € deposit in 2020 and a BTC withdrawal in 2021 and linked them as OTC as you have described. Accointing then treats the time of the trade to be 2021 for tax calculation (with the cost base of the “trade” 2020). Is this correct?

Hi. The date should be when the trade actually happened.

Hi @Rod thanks for your reply.

The question then is when the trade is considered to have happened:

  1. When the agreement was made and the money received (e.g. 2020) or
  2. when the sold BTC were transferred (e.g. 2021).

In case 1, it seems like it is a bug in Accointing that the FIAT deposit in 2020 and Crypto withdrawal 2021 leads to a trade (and tax consideration) for 2021.

Maybe @WINHELLER could shed some light here (German would also be fine for me).

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Let me double check with them and get back to you!

Still pending on the answer. @Winheller is currently on holiday but should be back soon.

Hello @cousteducto, apologies for our late reply! Under German tax law, the trade is considered to have happened the moment the contract is entered into. It doesn’t matter when the order is fulfilled, i.e. in your example the trade is considered to have happened in 2020. Best regards, Attorney Philipp Hornung

Hi @WINHELLER, thanks for clarification.
@Rod then it indeed seems like a bug in Accointing to me, which may have severe consequences, such as Tax calculation for the wrong year or errors calculating long/short holding times.

I can provide you with a minimal example as Accointing xslx export if required but it should be obvious from the following screenshots:


OTC Verknüpfung 2

The OTC sale will be allocated to 2021, although it should be considered for 2020 as @WINHELLER explained.

In a fictional example of having the BTC bought on 01.01.2020, this leads to:

  • No tax calculation of the sale for 2020 (although it would have been a short holding period)
  • Tax calculation for 2021 as long holding period