After the adjust page, some users may encounter a page titled 'Unmatched Disposal(s) Found'. This means that, based on the data entered into Lukka Software at that point, there are more sells/disposals of cryptocurrency than buys/acquisitions.
For example: If the user loads only 2 transactions into the system, a buy of 5 Bitcoin and then a subsequent sale of 11 bitcoin, there would be an 'Unmatched Disposal' of 6 Bitcoin.
The most common causes of 'Unmatched Disposals' are:
- An asset acquisition that would not generally be found in an exchange file was not added / identified (i.e., distribution history was not identified, dust conversions not added, OTC trading activity not included, etc.).
- Some of the data related to the transaction is missing, e.g., cost basis or quantity is unknown.
- A transaction file from a source/venue was not added (e.g., user traded on Poloniex and did not add in the relevant transaction history).
- Sell transactions were overstated (i.e., a disposal was entered twice).
- Margin trading was not properly identified or included (i.e, an asset was acquired on margin or sold short with no indication).
- Transfers into the account were not properly identified as acquisitions or taxable events. A non-taxable transfer to/from self will not resolve the unmatched nature of the disposal(s).
In the event you see this message, there are 2 options:
- Click "Resolve Now". Go back through your data and ensure that full transaction and acquisition history has been correctly loaded into Lukka Software. Update your information as necessary.
- Click "Continue". This will advance you to the gain / loss summary screen without resolving your missing data. In the event you choose this option, Lukka Software will assume that all the missing acquisitions occurred immediately prior to your disposal of the asset at $0 cost basis.
NOTE: Neither Lukka nor LukkaTax provides tax advice. The statements above are general in nature and do not address how the application of the tax rules can vary based on a taxpayer’s actual facts. Please consult a tax professional on how the tax rules apply to your specific facts.