Sometimes deposits and withdrawals fetched to Recap from a connected account have a tax impact that we can't automatically identify, for example, a deposit that is actually income or a withdrawal that's a purchase. You can reclassify this within the edit feature - here's an example with a step-by-step to show how...
Example - Change Withdrawal to Purchase
Say Recap has fetched a withdrawal via the API — by default, this is treated as a non-taxable event. But if that withdrawal was actually a purchase, paying crypto for goods or services, it needs to be reclassified: a purchase is a taxable disposal for capital gains tax purposes.
1. Head to "Activity" and locate the transaction
(Here we show the tax tab view to show that there is no taxable gain).
2. Click the "Edit" button, under the "Details" tab
3. In the "Type" dropdown select "Purchase" & click "Save Changes"
4. Mission complete - the transaction is now classed as a purchase!
Here's the tax tab view again showing the realised gain.
Bulk Reclassification
If you need to reclassify several transactions at once, you can do this directly from the Activity screen without editing each one individually.
1. Head to "Activity" and tick the checkboxes next to the transactions you want to reclassify
A toolbar will appear at the bottom of the screen showing how many transactions are selected.
2. Click "Change Type" and select the new type from the dropdown
All selected transactions will be updated at once.
To undo a bulk reclassification, select the same transactions and click Reset Type to revert them to their original type.
Made a mistake?
Don't worry! You can follow the same process as above to revert the edit. We always leave the original type in brackets as a reminder of what it was changed from.
Please note:
Reclassification is only available for transactions fetched from connected accounts. For custom accounts you will need to change the activity type in your CSV and re-upload or delete and re-enter a manually added transaction.