# Capital gain on transaction fees? Seems like a bug?

**URL:** <https://discuss.koinly.io/t/capital-gain-on-transaction-fees-seems-like-a-bug/7896>\
**Category:** Tax Questions\
**Created:** [October 13, 2021, 6:02am UTC](https://discuss.koinly.io/t/capital-gain-on-transaction-fees-seems-like-a-bug/7896 "2021-10-13T06:02:14Z")\
**Posts on this page:** 3\
**Page:** 1

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**Author:** ![Ahmed\_Ali](https://yyz2.discourse-cdn.com/flex052/user_avatar/discuss.koinly.io/ahmed_ali/32/4294_2.png) [@Ahmed\_Ali](https://discuss.koinly.io/u/Ahmed_Ali)\
**Post date:** [October 13, 2021, 6:02am UTC](https://discuss.koinly.io/t/capital-gain-on-transaction-fees-seems-like-a-bug/7896/1 "2021-10-13T06:02:14Z")

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I am transferring ETH between my own wallets, and Koinly calculates profits on this transfer. I wonder how this could be? This seems like a bug? Here is what I am seeing in the transaction cost analysis

> You transferred 1 `ETH from Ethereum - 1` to _Ethereum (ETH & Tokens) - 2_ and paid a transaction fee of 0.0026565 ETH (worth £6.87) on top. Your cost-basis for the 0.0026565 ETH transaction fee has been calculated using Shared Pool / Individuals (universal) from the investments listed below. Your final capital gain for this transaction is £2.74.

I also followed the instructions here: [https://help.koinly.io/en/articles/3661312-how-koinly-handles-transfers-between-your-own-wallets](https://help.koinly.io/en/articles/3661312-how-koinly-handles-transfers-between-your-own-wallets)

To turn OFF “Treat transfer fees as disposals”, but that didn’t seem to solve the problem

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**Author:** ![Mark\_DesLauriers](https://yyz2.discourse-cdn.com/flex052/user_avatar/discuss.koinly.io/mark_deslauriers/32/2255_2.png) [@Mark\_DesLauriers](https://discuss.koinly.io/u/Mark_DesLauriers)\
**Post date:** [October 19, 2021, 4:49pm UTC](https://discuss.koinly.io/t/capital-gain-on-transaction-fees-seems-like-a-bug/7896/2 "2021-10-19T16:49:57Z")

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Koinly is calculating a capital gain (not profit) on your disosal of ETH when you paid the tx fee on your transfer. The disposal of ETH is a taxable transaction.

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**Author:** ![system](https://canada1.discourse-cdn.com/flex052/uploads/koinly_app/original/1X/7ac58e5593a7122893d066794a7254dcdb5ddb31.png) [@system](https://discuss.koinly.io/u/system)\
**Post date:** [December 18, 2021, 4:50pm UTC](https://discuss.koinly.io/t/capital-gain-on-transaction-fees-seems-like-a-bug/7896/3 "2021-12-18T16:50:23Z")

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