A couple of minor changes have been made to the way that transfers are handled and the way individual tax lots are tracked.
How these changes affect you will depend on your cost-tracking method, but most users will be unaffected.
Universal tracking:
The only difference for universal cost tracking is that your tax lots will now be tracked more accurately. Instead of tracking only your total amount of coins, we now keep track of the wallet that each of the lots are located in.
The lots will of course continue to be sold in the exact same order as before, since transfers between wallets do not affect the universal tracking method.
There are only two noticeable side-effects:
You may see a higher number of disposals than before.
This is because the individual tax lots are now tracked separately between wallets, so big purchases can be split into multiple smaller lots if they are being transferred around in smaller portions. This change does not affect your total gains, only the number of disposals.
You may see errors if you have inaccurate timestamps for your transfers.
Using the previous transfer handling, transfers between wallets would not affect your gain/cost calculations at all (apart from transfer fees).
This means that even if you have inaccurate transfer data, Koinly would still calculate your gains correctly.
After these changes, incorrect transfers will result in inaccurate calculations, so you should fix the timestamps of your transfers if you see this.
Example of an "incorrect" transfer:
1. Joe bought 1 BTC on Binance at 1:30pm and transferred to Coinbase at 2pm.
2. Joe received 1 BTC on Coinbase at 1pm and sold at 1:40pm
We can see from these timestamps that the transaction timeline is implausible. This means that there is an error in the data (usually if data was entered manually or if CSV files are not using UTC timestamps).
This can be fixed be recreating the transfer transaction at the correct time.
Wallet-based cost tracking:
Wallet-based cost tracking has been adjusted so that transfers are tracked in more details. This ensures that all transferred tax lots are sold in the correct order, even in countries that do not track long-term gains. This change is not noticeable for most users.
We have also adjusted transfer fees for users that are not using 'Treat transfer fees as disposals'.
Previously, the transfer fee would be added to the transferred lot as an additional investment. The value of the fee now gets distributed equally to increase the average cost-basis of the transferred lot. This avoids issues where dust amounts are left unused in wallets.