How do I reconcile mismatched balances?
Your Taxoshi report needs to account for all the sold coins which it can see in your trading history. It’s common that you might have a balance mismatch in the data you uploaded. The coins in question might have been deposited from an exchange we don’t support or an exchange which you are unable to export your history from because it doesn’t allow it or perhaps it is defunct.
In any case, we need to assign these coins a value so the calculation can be performed. You can resolve this by filling in a Custom Data file and uploading it if you know the exact dates and amounts, or more simply during the reconciliation process in the report wizard.
If a balance mismatch is detected, you will be prompted to reconcile the balances before leaving the report configuration step.
We calculate the mismatched amount for you, all you need to do is type in the rate in NZD at which you want to declare these coins were purchased for.
For example, if you bought 5,000 NAV for $500 NZD you would input the rate as $0.10 per token.
If you’re unsure of the original purchase price, the most conservative approach is to leave the rate at $0 and the entire sale value will be considered profit.
The Inland Revenue has released more information on their position on cryptocurrency and tax
Inland Revenue is extending its guidance on cryptocurrencies to cover their use in employee share schemes
Scott Mason from Findex unpacks the Inland Revenue guidance on cryptocurrency taxation