In this guide, we will explain how to correctly enter ICOs / IDOs into your CoinTracking account.
This guide is separated into two sections
1) How to enter ICOs / IDOs without monthly vesting
2) How to enter ICOs /IDOs with monthly vesting
1) How to enter ICOs / IDOs without monthly vesting
Below is an example of an ICO purchased with Ethereum without monthly vesting:
1. Withdraw ETH from your ETH wallet.
2. Deposit ETH into "ICO" wallet
3. Trade ETH for ICO coin on "ICO" wallet.
4. Withdraw ICO coin from "ICO" wallet.
5. Deposit ICO coin back into your ETH wallet.
Please note: Transactions 1 and 5 may have already been imported by your blockchain importer, please check beforehand to avoid duplicates.
It's not necessary to create an ICO Wallet, but it's recommended to keep a good overview of the whole transaction process.
2) How to enter ICOs /IDOs with monthly vesting
Example of an ICO coin with monthly vesting:
1. On 10.11.2023, Other Expense of ETH on ETH wallet.
2. On 10.12.2023, Income (non-taxable) of first vesting amount into your ETH wallet.
3. On 10.01.2024, Income (non-taxable) of second vesting amount into your ETH wallet.
If you have more than two vesting periods, repeat this process for any additional vesting period.
Please note: The transaction types might be imported as Withdrawal and Deposit instead of Other Expense and Income (non-taxable). In such a case, you need to manually change it.
Set the vesting value:
The asset value of the vested ICO coins must be set according to the initial expense and divided by the amount of vesting periods.
Asset value of initial expense
Formula: Vesting Value= ──────────────────────
Amount of vesting periods
In this example, we paid 1 ETH for our ICO coins at a value of $3000 per ETH and we have two monthly vesting periods.
So if we use our formula: $3000/2=$1500. We get a value of $1500 per vesting.
To set the vesting value, click on the checkbox next to your vesting transaction (income not taxable) and click on edit:
Now you can enter the asset value.
As we calculated above ($3000/2=$1500). So we enter $1500 for each of the two vesting periods.
