The transaction type Hardfork is used to record incoming assets from hardforks in your depot. If you participated in a hardfork, you will receive new coins, which are either automatically recorded in Exchange or Wallet Depot or have to be entered manually in Unsynced Depots.
How do I create a Hardfork inflow?
Important: If you have received a hardfork, the inflow should be adjusted in the depot in which the original asset was held at the time of the hardfork. If the original asset is missing at the time of the hardfork, this will be shown as an error in the calculation of the tax report.
- Open your Blockpit Account and click the top menu item on Create New.
- Now select Add Transaction.
- Now choose the appropriate Depot and the transaction type Hardfork.
- Enter the date and time of the transaction and confirm with Continue.
In case of a manually created transaction directly in the WebApp, use your local time.
If the transaction is imported via CSV/Excel, use the standard exchange time UTC.
- Now enter the quantity and currency for the incoming asset. If you paid fees for the transaction, enter them with quantity and currency as well.
Tip: In the input fields for the currencies, you can enter the short name (BTC) or long name (Bitcoin) as a search term to narrow down the search of the displayed list. If your asset is not selectable, you can get more information here.
- Finally, click Create to complete the process and display the transaction in the Depot.
Note: If a Hardfork is created as a manual transaction in an Unsynced Depot, it will have a direct impact on the displayed asset balance of your depot.
If a Hardfork in an Exchange or Wallet Depot is created as a manual transaction, it will not directly affect the automatically and independently imported asset balance of your depot, but it will affect the final balance of your tax report.
How are fees considered for Hardforks?
Example: Hardfork inflow of 1 BTC with 0.0001 BTC fee.
Fees are mostly considered on the withdrawal side, but can also occur on deposits.
Fees, if paid in the incoming asset, will be considered as follows:
- Case1: No additional fee on the deposit side.
Incoming Amount: Net transaction amount (amount excluding fees)
Fees Amount: Enter nothing or 0
- Case2: Additional fee on the deposit side.
"If the fee is paid in the incoming currency, the input must be increased by the amount of the fee. The fee will be treated as a separate outflow."
Incoming Amount: Net transaction amount (amount excluding fees) + fee amount
Fee Amount: Enter fee amount as well
Different approach of exchanges to Hardforks?
Basically, a hard fork is a split of an original blockchain (coin) into two independent blockchains (coins). The reason for this is usually an intended improvement of the original blockchain technology through upgrades in the form of a hard- or softfork (softforks do not result in additional coins).
Hardforks therefore always happen on the blockchain itself and not on the exchanges. However, exchanges must also react to hardforks and, depending on the result of the hardfork, usually implement this technically in different ways.
If two independent assets result permanently from one hardfork, it must be considered that most of the newly created hardfork assets are not necessarily directly supported by sufficient computing power (miners/nodes) and therefore do not have any relevance or significance (listing) on exchanges.
However, if both assets remain and are listed, this is implemented on exchanges in most cases in the following way:
Example of a hardfork of Bitcoin Cash (BCH) on Binance on 11/15/2018:
Redistribution of BCH on 11/16/2018 + Redistribution of BSV on 11/16/20218
Since the originating asset BCH was "not really" renamed or redenominated and continues to be supported, the redistribution of BCH results in a doubling of the original asset and also an additional inflow of BSV, as can be seen in the figure.
This doubling must be afterward excluded from the tax report by the user!