Support for proving average cost basis through SKV 2198?

[aba9999123]

Hi,

First of all, just want to say - impressive job! Thanks so much for providing this tool - easing the job for all the rest of us panicking when trying to declare crypto gains/losses... I have tried generating K4 for both 2017 & 2018 and it works good. Now I have K4 reports. But i am afraid of uploading them to SKV as I wouldn't be able to explain where the cost basis are coming from, i.e. prove the average cost basis of all trades in the K4 report. Am I missing something - Is there a way to do this? Or are there any plans in the future to add support for Hjälpblankett SKV 2198 - making it possible to easily prove the cost basis in a very clear way? By having that it would enable to double check that all calculations in the k4 report are correct.

Anyhow - many thanks for taking time building this tool... Cred to you!

[ABEC7]

That information should be available in the input data from Cointracking, no? If your indata, i.e. the exported file from Cointracking, is in USD you'll find the conversion rates in the cryptotaxsweden package. Or are you asking about the same output data as Cointracking provides when doing the tax calculations in Cointracking? A log file showing every calculation that cryptotaxsweden might solve this?

[yomutiny]

aba is talking about if the tax authority decides to look closer at what you have declared and requires you to show how you arrived at your profit and loss figures. It would be great to be able to generate a file that described the calculations in detail to show the exact method for arriving at the figures on the generated K4s. I too would appreciate this ability.

[aba9999123]

@Adrihh The information regarding how the cost basis was calculated for the K4 report is not present on cointracking? The average cost basis is, as I understand, a byproduct of the algorithms employed in cryptotaxsweden scripts.

What I'm asking for is exactly what @yomutiny more cleary articulates "if the tax authority decides to look closer at what you have declared and requires you to show how you arrived at your profit and loss figures. It would be great to be able to generate a file that described the calculations in detail to show the exact method for arriving at the figures on the generated K4s.". Another benefit from such solution would be to enable more people to do Quality Assurance on the calculations. Logical errors or bugs would more easily be identified/discussed by the community :)

As Skatteverket this year will be specifically looking into cryptotrades, it is not unlikely they will ask for more details of the calculations - and if that is the case, i don't know if I could prove them.

[ABEC7]

You're right, the calculations are not available, only the value of each transaction. You dont think providing the full spreadsheet showing each and every transaction, extracted from Cointracking, would be sufficent for SKV?

[aba9999123]

I cannot anticipate what actions SKV will require, but the burden of proof is on the individual providing the declaration details. If SKV decides to look closer into the case, I doubt the average Joe in SKV will be able to do the calculations themselves - just as we are having trouble doing, instead they might ask you to prove your profit & loss figures together with the trade history, or they will determine your declaration incorrect w. accompanied penalties. Personally, I'm afraid to take the risk if I can't prove the calculations.

Buy maybe there are some people whom have previously dealt with SKV in regards to Cryptocurrencies that could shed some light into this matter? :)

[bitsofwinter]

Honest answer is that I haven't looked at this yet. However, I would assume that it wouldn't be too hard to output the data needed for this from the script, but I would have to have a look at the actual SKV form first.

This tool has been mainly something I've written to aid me with my own tax report and I am pretty confident I would be able to modify the code to output the information they would require in case they want to look closer but I don't know if I would prioritize writing that code before I had a good reason for it. It all depends on the amount of work involved of course.

If someone else wants to add this functionality then I can assist with explaining the code. (It's not that complicated for someone who knows how to program in Python).

[Instantexit]

I would definitely sleep better at night if i could prove "genomsnittligt omkostnadsbelopp" for the calculations as well ;)

[yomutiny]

I wrote a quick program independently in c# and can verify the results produced by bitsofwinter down to a few kronor but it does rely on the conclusion in this issue. My code isn't in a fit state to put up here yet but I might try and enable a report to explain the calculations in detail. Obviously it's best if it gets included in this repo but I don't speak python unfortunately. I'll try and clean up the code and add it as a repo in the hopefully near future.

[Ninj201]

I will be reporting my crypto trades for the first time this year, got it all done and working finally!
But now when I start to read around, I'm a little worried as well about not being able to provide any calculations if needed.
I guess I will have to send it as is and hope they don't ask, if they do I guess I can try ask if they want the transaction history from cointracking, the (.csv), and explain the calculation has been done in this software and I have no clue how to provide it.

I hope something like this can be added or someone like Yomutiny can get something working even if it is just a quick fix.

[Ninj201]

Today I got a mail from skatteverket, asking me to strengthen my avarage cost basis by 1: providing transaction history, 2: bank transaction history to show what I payed/received in sek when buying crypto. 3: show how I have calculated the avarage cost basis.

I will have to mail them and explain the situation, I sent them a simplified k4 as It had too much text in the non-simplified version, so maybe I can also send them a sru or pdf of that version too as it shows more individual numbers, but other than that I cannot prove the calculation as it was automated with this software, hopefully they understand the situation as there is simply too many transactions to calculate by hand 300+ or so.

I have made no actual money in crypto, only losses, so hopefully they don't care too much about it.

[yomutiny]

If you are willing to send me your trades.csv, I can send you the output from my report generator that tries to explain the cost basis calculations. It might be of use.
It generates a file detailing the calculations of each buy and sell and then does a little summary at the end. The file could potentially be huge if you've done a lot of trades. I make the reservation that I only calculate for buys and sells, nothing else.

Here is an example:
----- Coin: AE -----
-- BEGIN BUY: Balance: 0, Buy amount: 134.82900000, Cost: 3198.14, Current Cost basis (AverageUnitCost): 0
UPDATE COST BASIS: ((AverageUnitCost * Balance) + cost) / (Balance + amount) = 23.719971222808149582063205987
NEW BALANCE: 134.82900000
-- END BUY

-- BEGIN BUY: Balance: 134.82900000, Buy amount: 25.17100000, Cost: 597.05, Current Cost basis (AverageUnitCost): 23.719971222808149582063205987
UPDATE COST BASIS: ((AverageUnitCost * Balance) + cost) / (Balance + amount) = 23.71993750000000000
NEW BALANCE: 160.00000000
-- END BUY

-- BEGIN SELL: Balance: 160.00000000, Sell amount: 106.63000000, Proceeds: 453.27, Current cost basis (AverageUnitCost): 23.71993750000000000
CALCULATE IF PROFIT OR LOSS: proceeds - (AverageUnitCost * amount) = -2075.9869356250000000000000000
LOSS
Add sale proceeds 453.27 to current total proceeds from losing trades (0) = 453.27
Add cost of sold currency (AverageUnitCost * amount) (2529.2569356250000000000000000) to current total value of currency sold at a loss (0) = 2529.2569356250000000000000000
Add amount sold (106.63000000) to current total amount sold at a loss (0) = 106.63000000
-- END SELL

-- BEGIN SELL: Balance: 53.37000000, Sell amount: 46.67000000, Proceeds: 198.39, Current cost basis (AverageUnitCost): 23.71993750000000000
CALCULATE IF PROFIT OR LOSS: proceeds - (AverageUnitCost * amount) = -908.6194831250000000000000000
LOSS
Add sale proceeds 198.39 to current total proceeds from losing trades (453.27) = 651.66
Add cost of sold currency (AverageUnitCost * amount) (1107.0094831250000000000000000) to current total value of currency sold at a loss (2529.2569356250000000000000000) = 3636.2664187500000000000000000
Add amount sold (46.67000000) to current total amount sold at a loss (106.63000000) = 153.30000000
-- END SELL

------ AE SUMMARY ------
---- Winning Trades: ----
Amount of Coins: 0
Proceeds: 0
Cost: 0
Total Profit: 0
---- Losing Trades: ----
Amount of Coins: 153.30000000
Proceeds: 652
Cost: 3637
Total Loss: -2984
Balance: 7
---- || -----

[Ninj201]

Thanks Yomutiny that would be super great! any explanation/information I can provide them the better! Don't worry if it become a long list, that's to be expected, atleast than they have it as additonal information.

You can send me a mail to:
patrik_se@outlook.com

I will than send you the csv file, that way you don't have to give out your mail.

Im very glad for the help, thanks!

[bitsofwinter]

Any feedback you get from SKV about how this reporting should be done would be useful to post here so that I can look into adding this functionality to the script at some point.

[Instantexit]

For you people that are good at this sort of thing: Is it possible to get a "file detailing the calculations of each buy and sell" When you have done mining too? (and I also changed all "gifts" (forks, airdrops, gifts, gas distribution, etc) into "trades" instead with a cost basis of 0sek?) I am very stressed out atm, I have a lot of transactions, both mining and trades and I seem to have no way of proving the script calculations are correct to skv even though they probably are.

[yomutiny]

Any feedback you get from SKV about how this reporting should be done would be useful to post here so that I can look into adding this functionality to the script at some point.

Here is the excerpt from the letter from SKV which talks about explaining the calculation of average cost basis.