Binance Trading Fee imported as Separate Sell item and thus counted Gain!?

Koinly Support
#1

I just discovered a problem with Binance Trade fees being recorded as a separate sell item instead of being assigned to the fee column… The Web site shows it correctly, but the underlying reports do not (I checked a few of them) So instead of reducing potential gains, it is being added to the gain and is double taxed. Below you can see a fragment from Buy/Sell report and compare records from different exchanges

Buy/sell report 2020
Date Type Amount Currency Value Value Currency Value in USD Fee in USD Wallet Notes
2020-12-22 15:57:01 UTC Sell 14.247 EGLD 414.1196524 USD 414.1196524 Binance EGLD to BTC trade
2020-12-22 15:57:01 UTC Buy 0.017595045 BTC 414.1196524 USD 414.1196524 Binance EGLD to BTC trade
2020-12-22 15:57:01 UTC Sell 0.0000176 BTC 0.414236274 USD 0.414236274 Binance Trading fee in crypto
2020-06-06 21:47:53 UTC Buy 335.18561 XTZ 985.32 USD 985.32 14.68 Coinbase
2020-01-31 21:35:56 UTC Buy 0.1050408 BTC 985.099933 USD 985.099933 14.90006699 Gemini
2020-09-13 20:15:49 UTC Sell 0.085961943 BTC 887.3657612 USD 887.3657612 Binance BTC to YFI trade
2020-09-13 20:15:49 UTC Buy 0.0246 YFI 887.3657612 USD 887.3657612 Binance BTC to YFI trade
2020-09-13 20:15:49 UTC Sell 0.0000246 YFI 0.887365761 USD 0.887365761 Binance Trading fee in crypto
1 Like
#2

Hi, I will be interested to see if this prompts a response from Koinly as there are number of similar posts elsewhere asking similar (but maybe different aspects) of how the software treats various items when computing gains/losses. To date it would seem that nobody from Koinly Support has provided a holistic answer to these many queries/posts … which is a real pity!

#3
#4

Binance has alot of issues on Koinly. It only detects cross margin and spot activity. Withdrawal fees and any fiat deposits aren’t detected my the api import. It would be great to better automate all the binance services especially Binance Earn since you can’t manually import csv files an interest occurs everyday. I believe koinly support are understaffed. And that’s the reason many posts related to Binance issues don’t have a direct response.

#5

I think I know why this is happening. Binance / Binance.US takes the fee as crypto, not as Fiat. So if you buy 1000 XYZ at 0.1% Trading Fee, you’re paying 1 XYZ, which then gets converted into Fiat, resulting in a “capital gain/loss”. This only appears to happen with Binance / Binance.US. Really annoying, I hope that they implement a fix for Binance to resolve this as it results in inaccurate capital gains/losses.

#8

Looking at this again, I think this is actually the correct way to do it because the exchange is charging crypto to pay the fees and not fiat. When you pay the fee using crypto, you incur a taxable event, similar to if you bought a pizza with crypto.

#6

Thanks, that makes total sense and would explain what’s happening … tks.

Koinly … this is something you need to fix please otherwise the capital gains/losses report is pretty unusable as far as I’m concerned and takes a whole lot of editing in excel after downloading via csv … which pretty much defeats the whole objective of subscribing to your software … please can you address this soonest

Tks

1 Like
Transaction fee counted as a capital gain
HMRC tax return: computation of each disposal
#7

Seems no interest from anyone at Koinly … pity.

1 Like
#9

I am not a tax professional.

AFAIK this would also depend on how your country’s tax rules are setup. If any transaction realizes profits /taxation, then the blockchain transactions should also be taxed. In some countries it can be the opposite though where only the conversion to fiat realizes the profits/taxation.

#10

This topic was automatically closed 60 days after the last reply. New replies are no longer allowed.