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.
The Capital Gains Report provides a detailed breakdown of each asset disposed of during the specified tax year. It offers daily insights into proceeds, costs, and fees, as well as match types and the resulting gain or loss for each transaction.
Additionally, the report includes a section summarising the disposal totals for each asset, along with detailed information on margin, futures, and other chargeable gains or losses.
The Disposals Totals Section
This section is particularly useful for identifying potential issues with each token, such as discrepancies in proceeds, costs, or gains/losses that may require further investigation.
Review Gains and Losses
Check the total gain or loss for each token to ensure it aligns with your expectations. You could focus on:
The largest gains listed at the top.
The largest losses (shown in brackets) at the bottom of the section.
If any figures seem incorrect, review the detailed daily disposal calculations for the transactions involving that token to determine whether further action is needed.
Review Costs and Proceeds
Carefully review the Cost and Proceeds totals for each token:
If both Cost and Proceeds are nil, investigate the transactions to understand why. This may indicate a spam or worthless token, in which case no further action is usually required.
If Cost is nil but Proceeds are listed, this may signal a missing acquisition. Investigate the relevant transactions to ensure that all acquisition data has been properly accounted for.
Review Stablecoin Gains or Losses
Look closely at any significant gains or losses on stablecoins. Large gains or losses on stablecoins are often unexpected unless you are engaging in heavy trading. Investigate any discrepancies to ensure everything is accurate.
By carefully reviewing the Capital Gains Report, you can ensure that all disposals, gains, and losses are correctly accounted for. Address any issues that arise from token transactions, missing data, or unexpected results to ensure accurate reporting.