The simple answer is to have a trade between the supplied metal and the KAU/KAG received via EPD minting.
However, this will trigger a capital gains tax event.
As KAU received for an EPD gold bar could be deemed a receipt for the bar, should a tax event be triggered?
The KAU receipt could after all be redeemed for a similar bar, even if it's unlikely to be the same one.
You'd need to check whether this is a taxable event in your jurisdiction.
Anyway, for the purposes of this article, if we assume that it doesn't count as a disposal, there is a feature that can be used to manage this in Cointracking.
See option 2 in this Cointracking article:
cointracking.freshdesk.com
Here it is demonstrated using some sample transactions:
I didn't enter asset values in the swap trade - the £30k was picked up from the initial purchase of the bar and the value of the KAU from the KAU2 price at the time of the EPD.
I suppose the Mint price of the KAU could be entered, but the original cost of the bar is being used to price the swap.
I've made up a currency GOLD_KG to represent a 1 kg bar. If it was a silver EPD, something like SILVEROZ could be used. (A max of 8 characters is allowed for this in Cointracking).
Also made up is the Exchange BRINKS VAULT. Alternatively, this could be the name of any dealer/platform via which the bar was bought.
Here's the resulting capital gains tax report (UK calculation method).
Note that the presence of the word Swap in the Group field causes the trade to be treated as non-taxable for capital gains.
The Closing Position report then shows that the minted KAU inherits the cost basis of the gold bar.
However, this will trigger a capital gains tax event.
As KAU received for an EPD gold bar could be deemed a receipt for the bar, should a tax event be triggered?
The KAU receipt could after all be redeemed for a similar bar, even if it's unlikely to be the same one.
You'd need to check whether this is a taxable event in your jurisdiction.
Anyway, for the purposes of this article, if we assume that it doesn't count as a disposal, there is a feature that can be used to manage this in Cointracking.
See option 2 in this Cointracking article:
How to enter Wrapped / Cross-Chain Coins or Bridged Transactions?
TL;DR To record bridged or wrapped coins properly, enter them in three steps: Use a Swap or Trade for the coin conversion Record the Withdrawal from the source network Log the Deposit to the destination network Use Swap to avoid ta...
Here it is demonstrated using some sample transactions:
I didn't enter asset values in the swap trade - the £30k was picked up from the initial purchase of the bar and the value of the KAU from the KAU2 price at the time of the EPD.
I suppose the Mint price of the KAU could be entered, but the original cost of the bar is being used to price the swap.
I've made up a currency GOLD_KG to represent a 1 kg bar. If it was a silver EPD, something like SILVEROZ could be used. (A max of 8 characters is allowed for this in Cointracking).
Also made up is the Exchange BRINKS VAULT. Alternatively, this could be the name of any dealer/platform via which the bar was bought.
Here's the resulting capital gains tax report (UK calculation method).
Note that the presence of the word Swap in the Group field causes the trade to be treated as non-taxable for capital gains.
The Closing Position report then shows that the minted KAU inherits the cost basis of the gold bar.
