has anyone got any experience with $TORN? How would you classify the transactions which returns the Tornado.Cash Voucher (i.e. Tornado.Cash Voucher (vTORN) Token Tracker | Etherscan)? In the ‘Unknown currencies’ tab I could select ‘Tornado’ or ‘Tornado Cash’ for the voucher but I don’t want to confuse it with its governance token $TORN.
What’s the right classification for the transaction and identification for the currency $vTorn?
Thank you very much for your help
$vTORN should probably be mapped to $TORN.
Here is the list of classifications: The Different Types of Crypto Transaction Classifications - The Hub: Crypto and Bitcoin Tax Blog | ACCOINTING.com
unfortunately, the vTORN is not available on CMC.
Only sync the vTORN to another currency if they hold the same value (Such as a pegged currency at a 1:1 value)
I am happy to inform you that we now automatically add the coins listed on CoinMarketCap’s website. Unfortunately, if the digital asset is not available on CoinMarketCap we are currently unable to add it. When it has been added to CMC, we will gladly add it to our database.
Please consider voting for these 2 posts in the meantime:
Manual entry of tokens: Manual entry of tokens (those not listed on CoinmarketCap)
Missing currencies: Use CoinGecko API For Missing Currencies
thanks for the info and the links to the two feature request. Seems like a very related problem so I support those and voted.
Nevertheless I effectively cannot file my tax if you don’t provide a workaround in the meantime. I understand you have limited manpower, so sorry for being so blunt: That would render the whole product and all the effort and work hours I put into this useless.
How to proceed?
I talked joined the Tornado Cash Telegram group and asked them. I was told that it would be an income classification.
Accointing still keeps track of the cost basis of the unknown currency. We collect the fair market value of the other coin that was traded for it.
For example, I bought an unknown currency with USD.
If you traded it for another known currency, then it would have taken the price that it was worth at the time from CMC
If the cost basis is off, then you can edit the transaction as an OTC.
Hm, there is no other token traded for it, so I wonder how you might keep track of any value.
Will it still be correct to classify it as income?
For anyone till wondering how to map $vTORN
This is a non-transferable voucher (vTORN) that can be redeemed 1:1 for TORN within 1 year.
So it should probably be mapped to $TORN.
Here is what I can say.
So this is a weird case as the laws are not specific in this area, though I am unsure of your country as well. Therefore it is up to the user to classify as they want depending on how they chose to treat this kind of transaction. For example, with loans, the collateral should not be taxable, therefore, it should be an internal transfer as if it was staking, but the keyword is should. if someone wants to be super conservative they could do it as a trade. Similar to a LP, you can treat as a deposit or taxable event, or as if you are staking.
There is an argument that this is the same as staking, so you could just ignore the vTorn and follow the guide as if you were staking your torn.
You could also argue that you traded torn for vTorn and therefore have a different coin and should be taxed as such.
You could also try syncing vTorn to Torn.
Until there is more regulations with crypto, it is up to the individual.
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