How do Categories and Types Affect My Transactions?
The categories and types available within the TaxBit Accounting Suite help make the process of tracking and organizing your transactions as seamless as possible. Each category and type has a specific use and each impacts your transactions differently. In this article, we’ll go over how each may impact your transactions.
What are Types and Categories?
A type is automatically assigned in the system, and simply represents the direction of the transaction, specifically: In, Out, Internal, Swap, and Ignore. The type is a high-level “label” for individual transactions, and cannot be changed as it is representative of the original transaction’s direction of movement to, from, or within sources/wallets added to the TaxBit Accounting Suite. Categories associated with the type of the transaction can be assigned or modified to provide further detail about that transaction.
Assigning a category to a transaction will tell the system what specifically occurred during the transaction, and will also map that category to your chart of accounts if you have an ERP, such as QuickBooks, connected. Each category has a specific behavior associated with it, which will impact how the transaction is reflected in your account. You can assign a category to your transaction(s) by editing the transaction or by bulk-editing multiple transactions. It’s recommended to assign categories to your transactions to help with the organization of your data as well as for accuracy. Below, you’ll see a list of Categories (within each Type) that can be assigned to transaction data.
In
The “In” type represents transactions that are going into the source/wallet that has been connected to the TaxBit Accounting Suite. Inbound transactions will establish the cost basis of the particular asset being brought in as they tell us how that asset was acquired. You can view the total of your Inbound transactions on the Dashboard page.
Associated Categories
- Buy
- Income
- Airdrop
- Mining
- Equity
- Staking Reward
- Hard Fork Reward
- Interest
- Chain Split
- Cash Back
- Fiat Deposit
- Misc Income
- Mint In
- Margin In
- Staking Withdrawal
- Collateral Withdrawal
Out
The “Out” type represents transactions that are going out of the source/wallet that has been connected to the TaxBit Accounting Suite. Outbound transactions trigger a gain/loss calculation depending on the Category set. You can view the total of your Inbound transactions on the Dashboard page.
Associated Categories
- Sell
- Contractor
- Software and Web Services
- Fees
- Misc Expense
- Fiat Withdrawal
- Staking Deposit
- Collateral Deposit
- Loan Payment
- Lost/Stolen
- Loan Fee
- Mint Out
- Margin Out
- Burn
Internal
The “Internal” type is automatically assigned to transactions where an asset is being transferred from one wallet/source to another within the same organization. Internal Transfers are important in order to ensure the cost basis of the transactions is preserved across the involved wallets/sources properly.
Associated Categories
| Category | Definition | Example |
Internal Transfer |
Standard transfer between two organizational wallets | Transferring BTC from a Coinbase Wallet to a Bitcoin Wallet |
Swap
The “Swap” type is assigned to transactions where one asset was swapped out for another asset (crypto or fiat). The Token Activity of the transaction will reflect details for both sides of the swap.
Associated Categories
Ignore
Ignore should only be used in cases where the transaction should not be included as part of the gain/loss calculations. Transactions set as “Ignore” will also not sync to any downstream ERP integration you have linked to your account such as QuickBooks.
Associated Categories
Ignore these transactions from any gain/loss calculations