A multi-operation transaction refers to a single transaction that encompasses two or more actions or operations excluding fees. These could be trades, transfers, staking, rewards collection, or fee payments. In CoinTracker, these transactions require careful handling to ensure accurate tax reporting and portfolio tracking.
Examples of Multi-Operation Transactions
Here is a single operation transaction:
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Stake & Fee: You stake Solana (SOL) and, in the same transaction, pay a network fee in SOL.
Here is a two operation transaction:
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Stake, Send & Fee: You stake Jupiter (JUP) and, in the same transaction pay a protocol fee in SOL as well as a network fee in SOL.
Tax Accuracy Through Multi-Operation Transaction Handling
The breakdown of multi-operation transactions into separate operations allows for the precise calculation of gains, losses, taxable income and fees. CoinTracker ensures that each operation within a multi-operation transaction is accurately accounted for, thus enabling:
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Correct Fee Deduction: Fees are deducted appropriately, impacting the cost basis and gains calculations.
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Splitting Complex Transactions: Transactions with multiple inflows and outflows are split to accurately reflect the tax liability for each separate operation.
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Here is a transaction in which we initiated a Lending deposit of SOL, additionally we paid two protocol fees along with a network (gas) fee.
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Avoiding Double Counting: By segregating the transactions, CoinTracker prevents the same coin from being counted twice in different operations.
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Reflecting True Economic Events: Multi-operation transactions are often complex and may not fit neatly into typical single inflow/outflow transactions. CoinTracker's approach reflects the true economic events for each action within a transaction.
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Here is a transaction in which we initiated a Lending deposit of WSTETH and Borrowed MKUSD, prior to multi-operation support CoinTracker would import this type of transaction as a Trade which would result in a taxable event.
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Multi-operation support now categorizes each operation accurately and applies the true economic impact when calculating our tax summary, in this case both Lending and Borrowing do not result in a taxable event.
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Multi-operation support is currently an automated feature, more information can be found here on how we are auto-categorizing transactions. Users are not able to manually create their own multi-operation transactions. We recommend keeping a close eye on how each operation is categorized and treated. If you believe a multi-operation transaction is not being treated accurately please reach out to our support team directly for more assistance.