Hello 👋
During the Withdrawal Classification step of your analysis, you may see the warning "Withdrawal to categorize".
Several situations can explain this warning.
Recommendation:
👉 It is essential to upload all your transactions from day one before starting to label your withdrawals.
If even one account is missing, all withdrawals to that account will be recorded by our software as transactions to be categorized.
👉 Here are the different withdrawal labels, as well as deposit labels.
Corrections:
You have a withdrawal, but no corresponding deposit it can match with:
You will therefore need to label this withdrawal.
First, go to the Corrections page and filter your warnings by "Withdrawal to categorize":
Use cases for each withdrawal label:
Case | Label | Does the labeled transaction affect portfolio value? | Does the label make the transaction taxable? |
I transfer funds between two accounts I own, but the deposit doesn’t appear | Transfer between accounts | Yes ✅ Decrease ↘️ | No ❌ |
I swap between cryptocurrencies | Swap | Yes ✅ Decrease ↘️ | No ❌ |
My account is hacked | Hack or Loss | Yes ✅ Decrease ↘️ | No ❌ |
I pay at a restaurant in Bitcoin | Payment | Yes ✅ Decrease ↘️ | Yes 💰 |
I gift 1 ETH to my brother | Donation | Yes ✅ Decrease ↘️ | No ❌ |
Withdrawal due to transaction fees | Fees | Yes ✅ Decrease ↘️ | No ❌ |
I participate in an ICO | ICO | Yes ✅ Decrease ↘️ | No ❌ |
I stake 10 DOT | Staking | No ❌ | No ❌ |
I add 1 ETH and 3000 USDT to a liquidity pool (LP) | Add liquidity | Yes ✅ Decrease ↘️ | No ❌ |
I send 1 ETH to the wrong address | Hack or Loss | Yes ✅ Decrease ↘️ | No ❌ |
I buy 1 NFT | NFT | Yes ✅ Decrease ↘️ | No ❌ |
I deposit 1 ETH as collateral for a crypto loan | Collateral deposit | No ❌ | No ❌ |
I take out a crypto loan and get liquidated | Liquidation | Yes ✅ Decrease ↘️ | No ❌ |
I use derivatives and incur a loss | Derivatives loss | Yes ✅ Decrease ↘️ | No ❌ |
Any other withdrawal not listed above | Other withdrawal | Yes ✅ Decrease ↘️ | No ❌ |
Example:
I have a withdrawal of 11,762 DAI with no associated deposit, so it must be categorized.
Steps to follow:
1️⃣ Click on the blue "Correct" button.
2️⃣ Click on the "Identification" tab, then on the link to the blockchain explorer to identify the origin of the withdrawal.
3️⃣ Identify the transaction in the explorer page.
It is a swap of 11,762 DAI for 10.88 OHM.
This is the originating address of the transaction (yours).
Transaction details confirm point 1.
Conclusion: The withdrawal of 11,762 DAI to categorize is indeed a swap, so you should add the "SWAP" label.
🎉Well done! You have successfully categorized your withdrawal.
💡 We have listed the most common scenarios. For less common ones, you can use the labels "Other loss" or "Other withdrawal".
We strongly recommend consulting a tax lawyer to confirm the use of these labels based on your situation.
The Waltio Team