Got it, I have updated the changes. I now understand the capital gains recording concept.
On Mon, 18 Jan 2021 at 18:55, Martin Blais <[email protected]> wrote: > On Mon, Jan 18, 2021 at 7:23 PM Ghanashyam Prabhu <[email protected]> > wrote: > >> I am currently maintaining a beancount ledger file for tracking my crypto >> transactions and I'd like to seek advice on the workflow especially when >> recording capital gains from these transactions. Below is an example. >> >> Let's say I accumulated some BTC at some cost basis of 3500 and have a >> capital gain of 256.52$ from this transaction below. This transaction >> resulted in a total cash of $3756.53 which got deposited in my Coinbase >> account. What is the recommendation to track the capital gains correctly? >> > > What precisely do you mean by "track"? > Tell us what you need to do. > > > >> Also is there a way I can automatically calculate short term and long >> term capital gains that could have resulted from this transaction? >> > > All the data is there, but you have to write scripts. > e.g. > > https://github.com/beancount/beanlabs/blob/master/beanlabs/washsales/list-wash-sales.py > > BTW, this will be much easier in the next version because I'm going to add > a way to easily extract "trades" with incoming and outgoing postings > matched up. > > > >> >> I currently plan to add the below >> >> 2020-11-26 * "Coinbase" "Sell BTC at Coinbase" >> Assets:US:Crypto:Coinbase:BTC -0.22712412 BTC {} @ 16539.50 USD >> Assets:US:Crypto:Coinbase:Cash 3500.00 USD >> Income:Crypto:Capital-gains 256.52 USD >> >> After this sell, I re-invested all of this cash of $3756.52 again to buy >> BTC again a few days later. At this point should I split the transaction to >> use the Cash of 3500 from Coinbase account and use a fresh $256.52 deducted >> from a different account (other than Crypto:Capital-gains)? >> > > No. You entered this wrong. It should be: > > 2020-11-26 * "Coinbase" "Sell BTC at Coinbase" > Assets:US:Crypto:Coinbase:BTC -0.22712412 BTC {} @ 16539.50 USD > Assets:US:Crypto:Coinbase:Cash 3500.00 + 256.52 USD > Income:Crypto:Capital-gains -256.52 USD > > The number from the second leg is something you should be able to import > from your account/institution, and in practice you'd write it like this > (same numbers): > > 2020-11-26 * "Coinbase" "Sell BTC at Coinbase" > Assets:US:Crypto:Coinbase:BTC -0.22712412 BTC {} @ 16539.50 USD > Assets:US:Crypto:Coinbase:Cash 3756.52 USD > Income:Crypto:Capital-gains > > >> I think I should be using $252.56 from a different account since using it >> from the Capital-gains account will reduce my actual Capital-gains to 0 >> i.e. which is incorrect. On the other hand, using money from a different >> account is also incorrect since I re-used the money from total cash >> generated by the Sell transaction. >> >> Option 1 (this seems incorrect) >> 2020-11-28 * "Coinbase" "Buy BTC at Coinbase" >> Assets:US:Crypto:Coinbase:BTC 0.20778508 BTC {} @ 18078.87 USD >> Assets:US:Crypto:Coinbase:Cash -3500.00 USD >> Assets:US:BofA:Checking -256.52 USD >> >> Option2 (this seems incorrect since it reduces Capital-gains to zero) >> 2020-11-28 * "Coinbase" "Buy BTC at Coinbase" >> Assets:US:Crypto:Coinbase:BTC 0.20778508 BTC {} @ 18078.87 USD >> Assets:US:Crypto:Coinbase:Cash -3500.00 USD >> Assets:US:Crypto:Coinbase:Capital-gains -256.52 USD >> > > Capital-gains is never an Assets account. > Those two transactions make no sense to me. > Just record it like the second one I suggest and it all just works out. > Remember: you record what's actually happening in the accounts. > > > >> >> Please suggest what is a good way to handle this where I'd like to track >> Capital Gains at the end of the year for taxation. >> >> Thanks >> Ghanashyam >> >> -- >> You received this message because you are subscribed to the Google Groups >> "Beancount" group. >> To unsubscribe from this group and stop receiving emails from it, send an >> email to [email protected]. >> To view this discussion on the web visit >> https://groups.google.com/d/msgid/beancount/df24be66-a890-4c87-bbca-e8c3afdfa532n%40googlegroups.com >> <https://groups.google.com/d/msgid/beancount/df24be66-a890-4c87-bbca-e8c3afdfa532n%40googlegroups.com?utm_medium=email&utm_source=footer> >> . >> > -- > You received this message because you are subscribed to the Google Groups > "Beancount" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected]. > To view this discussion on the web visit > https://groups.google.com/d/msgid/beancount/CAK21%2BhOMVm692ex7nb_f8_UwU-mjXZZD5Sf9GMCQYxhitWBxtA%40mail.gmail.com > <https://groups.google.com/d/msgid/beancount/CAK21%2BhOMVm692ex7nb_f8_UwU-mjXZZD5Sf9GMCQYxhitWBxtA%40mail.gmail.com?utm_medium=email&utm_source=footer> > . > -- You received this message because you are subscribed to the Google Groups "Beancount" group. 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