Example
from practice
This is what the problem looks like in the dashboard
The balance total shows extreme negative values. As unusual as the numbers appear - they have a technical explanation.
This happens when CoinTracking records more outgoing transactions than incoming for an asset. The tax report then shows "Short (Warning)" with fictitious gains. TX-Partner clarifies the technical cause and resolves the issue.
Initial assessment of your CoinTracking data - 30 min.
A CoinTracking portfolio with 4 years of DeFi usage. Scam tokens and missing swaps led to massive discrepancies:
The balance total shows extreme negative values. As unusual as the numbers appear - they have a technical explanation.
Negative balances are not a bug, but a symptom of missing or misinterpreted data. These scenarios are the most common TX-Partner encounters.
Tokens with legitimate ticker names (e.g., "USDC") are sent to your wallet. CoinTracking only recognizes the name. Whether it's actually a scam must first be clarified through contract analysis.
Swaps via Cowswap, Jupiter, or 1inch are often not correctly interpreted. The inflow of the new asset is missing, but the outflow is recorded. Result: Negative balance of the received token.
Well-intentioned manual entries can unintentionally distort balances. Often exchange names are not spelled correctly or omitted entirely - leading to assignment problems.
CoinTracking calculates taxes based on imported transactions. When negative balances exist, the tool lacks information, and the tax report is created on this incomplete basis.
Crypto Documentation
Transaction history in crypto tax tool
Tax Calculation
Crypto tax tools & tax advisors
Compliance
DAC8, tax authority, tax advisor
If step 1 is incorrect, steps 2 and 3 cannot be correct.
Negative balances lead to "Short (Warning)" entries. The cost basis is set to 0.00 EUR – every sale is calculated as 100% profit.
TX-Partner analyzes the cause of negative balances – scam tokens, unrecognized DeFi swaps, incorrect entries. The transaction history is completely reworked so the tax report is based on correct data.
Crypto documentation is the foundation. If it's correct, everything after it is correct.
Scam Token Analysis
Verify contracts, identify scams, correct tickers.
DeFi Aggregator Corrections
Cowswap, Jupiter, 1inch – trace missing inflows.
Exchange Name Cleanup
Correct manual entries so assignments are accurate.
Audit-Ready Documentation
Result: Tax report without "Short (Warning)" – reliable for tax authorities.
CoinTracking records a sale even though no corresponding balance exists. The cost basis is set to 0.00 EUR – the entire sale proceeds are reported as taxable gains.
Under Analysis → Checks CoinTracking shows various analysis options for negative balances. From there, compare on-chain data and narrow down when the discrepancy occurred.
Detailed solutions depending on the cause (scam tokens, DeFi, manual entries):
Go to blog article: CoinTracking Negative BalancesTX-Partner analyzes your CoinTracking data, identifies the causes, and prepares your documentation for accurate tax reports & proof of funds.
Free Documentation Check