The transaction Label Transfer is used to transfer the acquisition costs of an outgoing asset A to an incoming asset B between 2 integrations, but can also be used for clawbacks (failed transactions) within one integration. Therefor, Transfers are non-taxable events.
The basis for this transaction label is always an Unlabeled Withdrawal in paired with an Unlabeled Deposit as counterpart. Unmerged stand for "not yet linked or labeled" transaction.
Transfers will automatically be detected and merged if certain conditions (Auto-Merging-Rules) do apply.
> More information about Automatic & Manual Merging to Label "Transfer"
> Basics on Labeling and Merging of Transactions
How do I create a Transfer?
- Open your Blockpit Account and click on the top menu item Transactions.
- Now select + Transaction.
- Enter the Date and Time of the transaction.
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 select the Transaction Label Transfer.
- Now enter the Integration, Asset and Amount. If you paid Fees, enter them with quantity and currency as well.
Tip: In the input fields for assets, 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 Integration.
If a Transfer is created as a manual transaction in a Manual Integration, it will have a direct impact on the displayed asset balance of your integration.
If a Transfer is created as a manual transaction in an Exchange or Wallet Integration, it will not directly affect the automatically and independently imported asset balance of your integration, but it will affect the final balance of your tax report.
How are fees considered on a Transfer?
Example: A Transfer of 1 BTC TO 1 BTC with 0.0001 BTC fee.
Fees can be recorded either in the incoming or in the outgoing asset.
Fees, if paid in incoming or outgoing assets, will be considered as follows:
- If fees are paid in the outgoing asset:
"The fee is treated as a separate outflow."
Outgoing Amount: Net transaction amount (amount excluding fees)
Fee Amount: Enter fee amount extra
If fees are paid in the incoming asset:
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