Balances Calculated by Crypto Tax Software Differ From Those Reported By The API

Sometimes, you may notice a warning sign next to a coin’s balance in your DeCrypto.tax account. This indicates that the Calculated Balance (determined by DeCrypto.tax) differs from the Reported Balance (provided by the API).

Here’s what these terms mean:

• Reported Balance: The amount reported directly by the API from your wallet or exchange.
• Calculated Balance: The balance DeCrypto.tax calculates based on the transaction data imported into the system.

What Does This Warning Mean?
A balance mismatch is generally not ideal and can happen for several reasons:

1. Missing Transactions:

   • Some transactions may not have been imported correctly via the API.
   • Certain exchanges limit the timeframe of accessible transactions (often 1 year or less).
   • Specific transaction types (e.g., P2P transactions) may not be available through the API.

2. Double Entries or Manual Edits:

   • Transactions edited or added manually might cause discrepancies.
   • Duplicate entries may lead to incorrect calculations.

3. Rounding Errors:

   • Small discrepancies may arise from rounding differences between systems.

4. Open Positions:

   • Some exchanges and trading platforms do not provide open position information through their APIs. To reconcile balances accurately, you may need to wait until all positions have been closed.

How to Resolve a Balance Mismatch
If you encounter this warning, we recommend the following steps:

1. Re-sync the Wallet

   • Ensure your wallet or exchange account is up-to-date by re-syncing it in DeCrypto.tax.

2. Reconcile Transactions

   • Download your transaction history in PDF or CSV format from your exchange account.
   • Compare this data with the Transactions View in your DeCrypto.tax account to identify missing or incorrect entries
   • Manually add or import missing transactions in the Transactions View, or edit existing transactions if there are discrepancies.

3. Review Manually Edited Transactions

   • Use filters in the Transactions View to locate manually edited transactions.
   • Carefully review these for accuracy and ensure they match your records.

Generated Transactions (G)

To ensure accurate tax calculations, DeCrypto.tax automatically creates Generated Transactions when your wallet shows a negative balance. Blockchain rules don’t allow sending or selling coins you don’t own, so these transactions are inserted to prevent invalid negative balances.

Key Details About Generated Transactions:

• They are marked with a (G) label in the Transactions View.
• These transactions assume a ZERO cost basis, which can distort your Capital Gains Tax calculation.

What You Should Do:

1. Locate and Review Generated Transactions

   • Use the GENERATED filter in the Transactions View to find them.

2. Replace with Real Transactions

   • Whenever possible, replace generated transactions with real transaction data.
   • Update details such as date, type, market price, and other critical parameters.

3. Leave as Is (If Necessary)

   • If you cannot find corresponding real transactions, you may leave the generated transaction as is.
   • Note: This approach is less accurate and may impact your tax calculations.

By following these steps, you can address balance mismatches and ensure more accurate crypto tax reporting. If you need further assistance, our support team is here to help!