How are fees (transfer/gas) handled and reported?

hessian19 · August 17, 2021, 1:37pm

Hello!

I have asked several questions within this community and have received excellent feedback! So, first, THANK YOU!

I wanted to learn more about how to handle the recording of transfer or “gas” fees. When I first began acquiring crypto I recorded everything manually within Excel. I recorded date, amount of asset, price at time of buy, etc. When I was simply buying and hodlng, this was easy. Now, I have expanded beyond simply acquiring and holding to transferring, exchanging, staking, etc. To do so requires fees such as ETH gas fees. How does this impact how I report taxes? I have not done a good job of tracking EVERY gas fee. I am just anxious that I haven’t tracked things the best. I should mention that I live in the USA.

I know that Coinpanda does a good job of fee tracking between exchanges and wallets that I’ve linked, but there are some that I cannot link (such as Indexed.Finance). What do I do there?

As always, thanks so much for your support! I am enjoying using your service and honestly I’m enjoying working through questions with your technicians in this community! Looking forward to hearing back.

Dan

Coinpanda · August 25, 2021, 12:16pm

Thanks a lot for the positive feedback, that keeps us motivated to continue working hard every day…!

Advanced Settings explained | Coinpanda Help Center
This article explains how transfer fees are considered in Coinpanda.

By default, Coinpanda will realize the gains (or loss) on any fees paid for internal transfers (sending crypto from Exodus → Ledger for example), but you can change this setting if you want.

Gas cost for token swaps (on for example Uniswap) will be included in the cost basis and is considered equal to trading fees.

The bottom line is that there is no special “tax treatment” of gas costs, and you do not need to report this separately in any country/jurisdiction as far as we know. The safest approach is to keep the default settings so that any gain/loss will be realized and included in the capital gains summary.