The transaction Label Token Migration (often also referred to as token swap) is used to transfer the acquisition data (date and costs) of an outgoing asset A to an incoming asset B between 2 integrations. Therefor, token migrations 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.
❗ The label Token Migration is currently only supported for Germany (DE) and Austria (AT). Support for other tax jurisdictions is planned.
🎓 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 do I create a Token Migration?
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 Token Migration.
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.
🧮 Effects of manually created transactions on your integration balance
If a Token Migration 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 Token Migration is created as a manual transaction in an Exchange or Wallet Integration, it will not directly affect the automatically and independently imported synced asset balance of your integration, but it will affect the calculated asset balance and your tax report.
How are fees considered on a Token Migration?
Example: A Token Migration of 1 BTTOLD TO 1000 BTT with 0.0001 BTTOLD 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