I live in the United States. Lets say you hold an NFT that rewards you as a holder by paying you coin ABC., periodically. You decide that you want to claim/collect your ABC coins. In order to do this, you need to connect your wallet to their dapp, and claim/collect, so these coins are not airdropped or automatically put in your possession, you need to claim them. However, in order to do so, you need to pay a 20% fee UPFRONT, which you pay in ETH, in addition to the normal ETH gas tx fee. At the time that you claim your ABC coins, they are worth $100 each, and you are claiming 10. So that’s $1,000. You pay the protocol the 20% fee in ETH, so that is $200. At the same time there is the normal ETH gas tx fee that was $15. You now have 10 ABC coins in your wallet. These ABC coins are a form of income obviously. However, would you report that you received $1,000 or would you report that you received $785? The receipt of the 10 ABC coins is tagged as a reward in Koinly, and I cannot merge the $200 ETH fee and $15 tx fee with the 10 ABC rewards. Surely I did not “make” $1,000, as I had to pay $215 to receive the rewards.
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