What are tax lots?

The separation of accounts is a principle that applies in some countries (e.g. Germany) regarding the tax treatment of capital investments. Simplified, it means that each exchange or wallet is considered a separate account – profits and losses are calculated per account without mixing them with others. For Coinfox users, this can mean the following: If you withdraw cryptocurrencies from one exchange/wallet and deposit them into another, these transactions must be correctly attributed. If deposits and withdrawals are not recorded as a related transfer, Coinfox could mistakenly assume that you sold the coins (in the first account) and bought them again (in the second account). This leads to calculation problems or unrealistic profits/losses in the tax report. To avoid this, always correctly label internal transfers – for example, by recording withdrawals and the corresponding deposits as an internal transfer. This way, the cost basis is maintained, and your tax calculation is correct even with separate accounts.