Disclaimer: This article is intended as an informative piece. This is not accounting or tax advice. Please speak to a qualified tax professional about your specific circumstances before acting upon any of the information in this article.
Each Deposit transaction in your Recap account should have a corresponding Withdrawal from another account, and vice versa. For instance, if you deposit BTC into your Coinbase account, there should be a corresponding withdrawal from another account, such as a self-custody wallet or another exchange.
To ensure accuracy, it’s important to manually match all deposits and withdrawals that represent internal movements between your accounts. Once matched, review any remaining unmatched transactions to determine whether they represent internal transfers or potentially taxable events.
Step 1: Identifying and Matching Transactions
To assist with this process:
Go to the Activity screen in Recap.
Filter by Deposit and Withdrawal transaction types.
Scroll through the transactions and manually match them by identifying internal movements between your accounts.
If you have many transactions, using the Export CSV function and performing this task in spreadsheet software like Excel or Google Sheets can help you review and match transactions in bulk.
Step 2: Resolving Unmatched Transactions
Unmatched deposits or withdrawals could suggest a missing account, such as a wallet or exchange. If you identify transaction data from a missing account, simply import it into Recap to fill in the gaps.
If unmatched deposits or withdrawals are not internal transfers, they may represent acquisitions or disposals of crypto assets. In this case, you have a few options:
Edit the transaction to reclassify it as the correct type.
Enter a manual trade to reflect the actual transaction.
Use the Sent/Received in a different currency feature to account for the movement.
Note: If you have a Deposit that was actually an acquisition and you choose to add a manual transaction to reflect this, you may need to adjust your account balance to avoid double-counting the asset.
For example, if you have a Deposit of 1 LTC into an account that was actually a Gift, and you add a manual Gift transaction for 1 LTC, Recap will mistakenly show a balance of 2 LTC since you now have two additions of 1 LTC.
To correct this, you could use the 'Exclude from balance calculations' toggle available from the Activity screen on the Deposit transaction.
Alternatively, you could also add a Withdrawal for 1 LTC to balance the account.
Remember, Deposits and Withdrawals are simply movements of crypto and won’t affect Recap's tax calculations. However, any fees included may count as disposals and could therefore impact on your tax calculations.