I use many exchanges, blockchains and wallets. So transfer token shouldn’t be counted as tax event. But why almost every transfer has gains or loss? For my cases, most of them as profits.
Often time when I transfer same token from one exchange to another wallet or platform, often it got withdrawal fee (often I got less tokens after withdrawal). So how almost every transfer got “profits” going on?
Transferring tokens or coins between your wallets/exchange accounts isn’t a taxable event by itself. But paying gas or other transaction fees on every one of those transfers is a taxable event.
Paying transfer fees or any fees using crypto is a disposal of the crypto and triggers a capital gain or loss for tax purposes in most jurisdictions around the world. Having said this, Koinly does provide an option in Settings called “Treat transfer fees as disposals?”. This feature is turned on by default in most jurisdictions but you can turn it off if you don’t want transfer fees to be taxed at the date the fee is incurred.