Understanding Transaction Types
What Are Transaction Types?
Section titled “What Are Transaction Types?”PrivateACB automatically recognizes 60+ different transaction types from exchanges, wallets, and DeFi platforms. Each transaction type describes what happened (bought crypto, received rewards, swapped tokens, etc.) and determines how it’s taxed.
What you’ll learn:
- The transaction types PrivateACB recognizes
- How transaction types determine tax treatment
- Why you never need to manually categorize
Why Transaction Types Matter
Section titled “Why Transaction Types Matter”Tax treatment depends on what happened:
- Buying crypto creates an acquisition (affects cost basis)
- Selling crypto triggers a capital gain or loss
- Staking rewards are taxable income
- Transfers between your wallets are non-taxable
PrivateACB handles this automatically. When you import transactions, each type is classified into the correct tax category. No dropdown menus. No manual tagging.
The Five Tax Categories
Section titled “The Five Tax Categories”All transaction types map to 5 tax categories:
| Category | Tax Treatment | Common Examples |
|---|---|---|
| Exchange | Capital gains/losses | Buys, sells, trades |
| Income | Taxable income at fair market value | Staking, mining, airdrops, interest |
| Transfer | Non-taxable (tracking only) | Wallet-to-wallet transfers, deposits, withdrawals |
| DeFi | Capital gains (varies by context) | Swaps, liquidity operations, lending |
| Ignored | Excluded from calculations | Spam, failed transactions, dust |
How it works:
- Import CSV file with transactions
- Classification engine reads each transaction type
- Automatically maps to the correct tax category
- Tax calculations apply appropriate rules
- Reports show accurate results
Zero manual work.
Transaction Types by Category
Section titled “Transaction Types by Category”Exchange / Trading (7 types)
Section titled “Exchange / Trading (7 types)”Create acquisitions (buys) or dispositions (sells) for capital gains calculations.
| Type | Description |
|---|---|
buy / purchase | Purchase cryptocurrency |
sell / sale | Sell cryptocurrency |
trade | Exchange one crypto for another |
limit_buy | Limit buy order |
limit_sell | Limit sell order |
market_buy | Market buy order |
market_sell | Market sell order |
Income (14 types)
Section titled “Income (14 types)”Generate taxable income at fair market value on the date received. These become acquisitions in your cost basis.
| Type | Description |
|---|---|
mining / mined | Mining rewards (proof-of-work) |
staking / staked | Staking rewards (proof-of-stake) |
reward / rewards | General rewards |
airdrop | Free tokens from airdrop |
fork / hard_fork | Tokens from blockchain fork |
interest | Interest earned |
dividend | Dividend distributions |
cashback / cash_back | Cashback rewards |
bonus | Promotional bonuses |
referral | Referral rewards |
yield_farming / yield | Yield farming rewards |
realized_pnl / pnl | Realized profit/loss (from futures, margin, etc.) |
Income reporting by jurisdiction:
| Income Type | Canada (CRA) | US (IRS) |
|---|---|---|
| Mining, Staking, Yield Farming | T2125 (Business Income) | Schedule 1 / Schedule C |
| Interest, Rewards, Airdrops, Other | Line 13000 (Other Income) | Schedule 1 (Other Income) |
Transfer (6 types)
Section titled “Transfer (6 types)”Non-taxable movements between wallets you control.
| Type | Description |
|---|---|
deposit | Deposit to exchange |
withdrawal / withdraw | Withdrawal from exchange |
transfer_in / transferin | Incoming transfer |
transfer_out / transferout | Outgoing transfer |
send / sent | Send to another wallet |
receive / received | Receive from another wallet |
Important: Transfers between your own wallets are non-taxable. However, sending crypto to someone else as payment would be classified as a disposition.
DeFi (5 types)
Section titled “DeFi (5 types)”Decentralized finance operations, generally treated as capital gains events.
| Type | Description |
|---|---|
swap | DEX token swap |
liquidity_add / add_liquidity | Add liquidity to pool |
liquidity_remove / remove_liquidity | Remove liquidity from pool |
lending / lend | Lend crypto to protocol |
borrowing / borrow | Borrow crypto from protocol |
Other (5 types)
Section titled “Other (5 types)”Special situations and edge cases.
| Type | Description |
|---|---|
fee / fees / gas | Transaction or network fees |
lost / loss | Lost cryptocurrency (e.g., lost wallet) |
stolen | Stolen cryptocurrency |
gift | Gift of cryptocurrency |
donation / donate | Charitable donation |
Unknown
Section titled “Unknown”| Type | Description |
|---|---|
unknown | Unrecognized type (flagged for review) |
Unknown types are flagged during import. You can review and reclassify them in the Classification Review step of the import process, or later in the Data Viewer.
How Classification Works
Section titled “How Classification Works”When you import a CSV file, PrivateACB’s classification engine:
- Reads the transaction type from each row in your CSV
- Normalizes the text — handles variations in case and naming (e.g., “Staking Reward”, “STAKING”, “staked” all map to
staking) - Maps to a tax category — Assigns the correct class (Exchange, Income, Transfer, DeFi, or Ignored)
- Stores both values — The specific type (e.g.,
staking) and the class (e.g.,income) are saved to your database
During import, you have the opportunity to review and override classifications in the Classification Review step. User overrides are remembered for future imports from the same source.
The result: Tax calculations automatically apply the correct rules based on each transaction’s category. Income types create taxable events at fair market value. Exchange types trigger capital gains calculations. Transfer types track holdings without tax impact.
Frequently Asked Questions
Section titled “Frequently Asked Questions”What if my platform uses different terminology?
Section titled “What if my platform uses different terminology?”The classification engine handles variations automatically. “Earn” maps to “reward”, “Purchase” maps to “buy”, “Staking Reward” maps to “staking”, etc. Case doesn’t matter.
Can I override a classification?
Section titled “Can I override a classification?”Yes, in two ways:
- During import — The Classification Review step lets you reclassify types before they’re saved
- After import — Edit individual transactions in the Data Viewer tab
Do I need to memorize all the types?
Section titled “Do I need to memorize all the types?”No. The classification engine handles everything automatically. You only need to understand the 5 tax categories when reviewing reports.
What if a type is “unknown”?
Section titled “What if a type is “unknown”?”Unknown types are flagged during import validation. You can reclassify them during the import’s Classification Review step, or edit them later in the Data Viewer.
How are DeFi swaps taxed?
Section titled “How are DeFi swaps taxed?”Token swaps are treated as dispositions of one asset and acquisitions of another — creating a taxable event. The capital gain or loss is calculated based on the cost basis of the disposed asset.
Are transfers between my own wallets taxable?
Section titled “Are transfers between my own wallets taxable?”No. Transfers between wallets you control are non-taxable movements. PrivateACB tracks the transfer for inventory purposes but does not create a tax event.
Summary
Section titled “Summary”60+ transaction types cover:
- All major exchanges and platforms
- DeFi protocols (swaps, liquidity, lending)
- Staking, mining, and rewards
- Wallet transfers
- Special situations (gifts, losses, donations)
Automatic classification means:
- Zero manual categorization
- Tax-accurate from import to reports
- Handles complex portfolios effortlessly
Just import your data. PrivateACB handles the rest.
Related guides:
- Import Flow Guide — How to import transaction data
- Classification Review Guide — Reviewing and overriding classifications
- Canadian ACB Calculation Guide
- US Tax Calculation Guide
Last Updated: February 2026 PrivateACB Version: 2.0