The Transaction-Label Non-Taxable (In/Out) is available for both incoming and outgoing transactions and is used to record assets that are to be treated as tax-neutral.
Non-Taxable (In/Out) transctions themselves do not trigger taxable gains or losses and will be rated at market value at the time of in- or outflow.
💡 The Non-Taxable label can be used especially for Fiat bank deposits/withdrawals and loans, as well as refunds. You can also use the filter option "Asset Type = Fiat" to search specifically for fiat transactions.
Another use case is the display of incomplety represented transfers (deposits) whose actual origin is unknown.
🎓 More details on the tax implications and categorization of all transaction labels can be found in the tax results under the menu item “Reports” and in the last pages of your tax report.
How to create a Non-Taxable transaction?
Open your Blockpit Account and click on the 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 Non-Taxable (In/Out). Pay attention, however, that only one Label fits per flow direction (In/Out).
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 Save to complete the process and display the transaction in the Integration.
How do manually created transactions affect my balance?
Manual Integration (CSV/Excel)
Incoming and outgoing transactions created within a manual integration directly affect the displayed asset balance of that integration.
Automatic Exchange or Blockchain Integration (API)
Incoming and outgoing transactions created manually within an automatic exchange or blockchain integration do not affect the automatically imported Synced Balance of that integration. However, they can affect the Calculated Balance and therefore influence the results shown in your tax report.
How are fees taken into consideration for Non-Taxable (In/Out) transactions?
Example: Non-Taxable (In/Out) transaction of 1 BTC with 0.0001 BTC fee.
Fees are usually charged on the withdrawal side, but they can also occur on the deposit side.
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