No worries.

Be patient. Learning how to do bookkeeping right is like solving little
puzzles. It takes time. Eventually you see patterns.

(Two weeks ago I reviewed ten years of health care bills and finally
figured out a decent way to handle all the variations of billing and
converted all of them and reconciled a ton of errors I had made in
recording. I need to write a doc on it)

On Tue, Jan 19, 2021, 00:06 Ghanashyam Prabhu <[email protected]> wrote:

> 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
>>>
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