Internal transfer and tax lots

Short Answer:

Do not mark the transaction as a trade, but as an internal transfer – consisting of a withdrawal (from Coinbase) and a corresponding deposit (to your wallet). Coinfox automatically recognizes this as a transfer between your own wallets.

Long Answer:

When you move crypto from Coinbase to your Coinbase Wallet or generally between two of your own wallets or exchanges, it is not considered a trade or sale from a tax perspective but merely an internal transfer. This should also be represented as such in Coinfox.

👉 This is how it works correctly in Coinfox:

1. Create two transactions:

   Transfers are technically always represented as two transactions – a withdrawal on the sending side (Coinbase) and a deposit on the receiving side (e.g., Coinbase Wallet).

   Automatic assignment by Coinfox:

   Coinfox automatically recognizes the transfer when:

   • the amounts are identical (if applicable, deposit amount = withdrawal amount minus fee),
   • the token (e.g., BTC, ETH) matches,
   • the time difference between withdrawal and deposit is a maximum of 12 hours,
   • and the transactions are chronologically ordered (deposit follows withdrawal).

2. Important:

   If you manually enter these transactions, ensure that you do not classify them as “trade” or “buy/sell” – this would distort the tax calculation. Internal transfers do not trigger tax obligations and retain the cost basis of your coins.

Common mistakes and notes:

• Consider fees:

  If a fee is incurred during the transfer, indicate this in the withdrawal transaction. The deposit amount must match the withdrawal minus fee.

• Check order:

  The deposit must occur after the withdrawal in time – otherwise, Coinfox cannot correctly assign the transfer.

• Use API connection:

  Many wallets and exchanges automatically recognize internal transfers if you have connected them via API or blockchain importer. If not, you can manually adjust them.

• Missing assignment?

  If Coinfox does not recognize your transfer, it is usually due to discrepancies in amounts, incorrect order, or excessive time difference. Check your entries carefully once more.