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ChristianØ pfp
ChristianØ
@christian
Crypto taxes suck. But it's a data problem, not a tax calculation problem. Few people know this. And even fewer are trying to fix it.
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Mark Hilgenberg pfp
Mark Hilgenberg
@hilgi
I use token tax and they do a great job with the data. Over 20,000 transactions one year with LPs, staking, cross chains etc.
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ChristianØ pfp
ChristianØ
@christian
I've tried token tax a bunch of times and they always seem to get something wrong. Tx classifications or missing data, something is always wrong.
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Mark Hilgenberg pfp
Mark Hilgenberg
@hilgi
If you are just doing the basic ya, I use the VIP and some years above that.
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ChristianØ pfp
ChristianØ
@christian
Not basic, used Pro. Vip the only difference is that I get consultations and they will manually sift through the data for me. But the data was still wrong to begin with, in their systems.
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Mark Hilgenberg pfp
Mark Hilgenberg
@hilgi
Hmm, not sure what would cause that. They draw from blockchains and CEXs. The only issues I found was with very old BTC.
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ChristianØ pfp
ChristianØ
@christian
CEXs are usually easy, that's just swaps and staking and really just simple stuff. The problem with getting the data from the chain is usually that the source they retrieve that data from can provide all or only some of the data needed to get an accurate picture of the transaction history, on that chain, on that specific account. That doesn't even cover the other hard part yet which is the categorization of each transaction and account reconciliation. Now repeat that across 10-15 chains or more, and something always ends up wrong. Always.
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Mark Hilgenberg pfp
Mark Hilgenberg
@hilgi
If you have that complex of stuff, you need the VIP. I was doing LPs on Osmosis Zone in 2021, so that is how I found them, no one could handle the Cosmos eco.
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ChristianØ pfp
ChristianØ
@christian
Vip still doesn't solve their data problems though. Again it just hires their team to do manual work. Yeah cosmos stuff is a nightmare, we get a lot of requests there.
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Mark Hilgenberg pfp
Mark Hilgenberg
@hilgi
I guess I would need to see a data problem issue to understand your issue. I worked with their team to solve all my issues.
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ChristianØ pfp
ChristianØ
@christian
Ok, bear with me here... First, by default, nodes from most data infra providers do not typically come with trace turned on, it's not common. Which is essential to get a 100% accurate report of a transaction, and essential for wallet reconciliation. Tokentax is not running it's own nodes (especially not trace nodes) on every chain they support. High volume, heavy compute loads, the possibility of this being the case is basically zero. (even less common for the chains that are further and further away from mainnet e.g. Degen) In a transaction like the example in the second image, the transaction on the explorer displays inaccurate information (which is what tokentax displays) because it doesn't immediately pull all the internal txns, assuming it already has all the data it needs to accurately report. Problem is, that initial glance of the transaction (the data pulled into tokentax) is missing vital information about the transaction itself, and without it, the gain/loss and tx classification is wrong.
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