It's not uncommon for a project to rebrand to a new ticker code, or for a re-denomination to occur.
For example everyone who held some LEND in late 2020, would have had their tokens migrated to AAVE at a ratio of 100:1. For every 100 LEND tokens you had before the re-denomination, you now have 1 AAVE token.
LEND and AAVE are two separate assets in Syla, so you'll need to ensure the re-denomination is treated correctly, otherwise you could end up with a missing cost base, or incorrect final balances.
In Syla, there is a special transaction type called Rebase which you can consider using, which allows converting one asset into another asset, while still keeping the original cost-base and the original purchse date.
An example Rebase
For the LEND to AAVE re-denomination, imagine the following scenario:
Deposit 1,000 AUD to your exchange.
Purchase 500 LEND with your AUD
The LEND project migrates to a new ticker code called AAVE and re-denominates 100:1. Your 500 LEND has been replaced by 5 AAVE.
Sell 5 AAVE back to 2,000 AUD.
Here's how it would look in Syla:
Notice that the only tax outcome is on the final trade of AAVE back to AUD.
The Rebase transaction itself looks like this:
You can try the example out by importing this file to any data source in Syla.
What is the tax treatment of a Rebase
If you use a Rebase transaction in Syla, then it will have the following tax outcomes:
The original purchase date of the parcels being rebased will remain the same. Your eligibility to the CGT discount is not reset.
The original cost base of the parcels being rebased will remain the same. e.g. if you spent a total of $1,000 purchasing the original asset, then the cost base will still be $1,000 on the new asset after the rebase.
There is no assessable income recorded.
You will still need to decide if a Rebase is an appropriate tax classification for the transaction. As an alternative, you could also record it as a regular Trade.
Tips
Depending which exchange or wallet you've imported, Syla may already detect and classify the Rebase for you.
If Syla has not done this, then you'll need to insert the adjustment manually. You can either do this from the Transaction page by clicking Add Transaction, or, you can use the Custom CSV Template.