Koinly allows you to tag cryptocurrency deposits and withdrawals that have special meaning in your tax reports.
The term 'Label' is no longer used in Koinly, we now refer to these only as 'Tags'.
Deposits can be tagged as one of these:
- Lending Interest
- Income (other income)
- Fee Refund
- Margin Loan
These deposits will appear in special sections in your tax reports, either in the Income section, or the Miscellaneous section.
Some of these tags can be set to behave differently depending on your preferences and/or local tax guidelines. You can find these toggles in your settings.
Withdrawals can be tagged as
- Loan Fee
- Margin Fee
- Loan Repayment
- Margin Repayment
The Gift/Lost tags are special and will result in the withdrawal not generating any gains. It is as if you sold the coins for the same price that you bought them for. You should only use these tags if you know that your country does not tax Gifts/Donations/Lost assets.
See Tax-free gifts to a spouse, partner or a friend
The Cost/Margin Fee/Loan Fee tags will still result in a profit/loss but the transaction will also show up in the Expense section of your Tax Report.
There are a few other tags in Koinly that can be used for certain transactions:
Realized P&L can be used for futures/contracts/options trades. This tag will tell Koinly to treat the entire transaction as profit/loss. See Futures and perpetuals (PNL transactions)
Swap can be used for any tax-free "trade". This tag should not be used for regular trades but only tax-exempt transactions such as migrations and rebases. See Token rebases and symbol swaps (AMPL, DOR, BTT)
Liquidity In/Out can not be applied manually but will be applied by Koinly when sending or receiving liquidity from liquidity pools on DEXes. See Liquidity Providing (LPing) - Liquidity in/out
Sent to Pool / Received from Pool are not actually tags. Turning a deposit/withdrawal into a Pool transaction will allow Koinly to effectively track the cost-basis of any assets that are sent to a staking pool but returned later. See Staking and farming tokens