If you are seeing really high amounts for your Proceeds from sales and Acquisition costs then don't worry, this is entirely normal. In this article we will look at how these are calculated.

Proceeds from sales

This is the total sale price of all your disposals. If you invest $1000 and keep trading with it multiple times, you might end up with a sales proceed that is much higher than your initial investment. We will look at this more in the next example.

Acquisition costs

This is the total cost of all your disposals. It is a sum of all transactions so even this can be really high.

Your capital gain = Proceeds from sales - Acquisition costs

Let's look at an example:

John buys 1 BTC for $1000 USD. He later exchanges this BTC for 2 ETH (worth $1500). A couple days later he trades the 2 ETH for 1.5 BTC (worth $2000).

Here's what the transactions look like on Koinly: Screenshot 2020-07-10 at 14.54.18.png

If we go to the Tax Reports page and download the Complete Tax Report we can see that the Proceeds from sales and Acquisition costs are much higher than the $1000 that John had invested:

Screenshot 2020-07-10 at 14.56.06.png

This is because Koinly is adding up all the proceeds and costs. Here are the calculations:

Proceeds from sales = 1500 + 2000 = 3500

Acquisition costs = 1000 + 1500 = 2500

Capital gain = 3500 - 2500 = 1000

Proceeds from sales & acquisition costs are very high

Proceeds from sales

Acquisition costs

Let's look at an example:

Comments

Proceeds from sales

Acquisition costs

Let's look at an example:

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