When CoinTracker identifies an outflow (Send) without a corresponding inflow (Receive), it automatically treats this as a disposal, or sale, of an asset.
This classification results in the calculation of a taxable gain or loss, as all disposals are considered taxable events.
Steps to correct potential misclassification
- Verify wallet connections: Ensure all wallets are connected to CoinTracker. Missing connections can result in incomplete data.
- Review balance differences: After confirming wallet connections, check for any balance discrepancies. Correcting these can help identify missing transactions that caused the misclassification.
By following these steps, you can ensure that your transfers are accurately categorized and avoid unintended impacts on your capital gains reporting.