DeFi allows users to take part in traditional finance activities like lending, liquidity deposits, mining, swapping, work income, interest or rewards. DeFi covers a broad range of activity and can be captured in several ways in Ledgible using the Tax Category attribute for transactions.
- For API connected exchanges, Ledgible will automatically classify DeFi transactions accordingly if this information is provided by the API.
- Ledgible will automatically categorize DeFi transactions on the Ethereum and Algorand blockchains added as a blockchain crypto source.
- You can include DeFi and other categories when adding a data source using the File Import option. The File Import template will be available to download when adding a file as a data source. There are different types of file import template: the DeFi activity template will display options for different types of DeFi activity.
- Any DeFi transactions can be added manually. Please see this article from our Knowledge Base for an example of how to add a manual entry for staking rewards.
- Finally, if the relevant transactions have already been added to Ledgible, from the Transactions tab you can set a category for a transaction from the Actions column or use the Categorize button to create rules that can add (or remove) the category for matching transactions in bulk.
Mining income and other transactions that would be considered income per IRS guidelines can be reported on for tax purposes by running the Income Transaction Export report. Similar reports are available for donations and gifts as well.