Tax agency request: What is the difference between Loan Fee & Margin Fee in the tax reports?

Tax Questions
#1

The tax agency asked me this question.

I kind of know what Margin Fees are (fees you pay when you are margin trading).
No idea what Loan Fees are.

Can anyone help? I don’t really want to send them a guess as an answer.

#2

Hey @James_Robertson

Thanks for your message. :wave:t2:

The Loan Fee tag is for any costs associated with a repaying a loan.

So you’d typically have:

  • A deposit tagged as ‘Loan’ when you take it out
  • A transaction tagged as ‘Loan Repayment’ when paying it back
  • Any fees that you’ve paid for taking out or repaying the loan would then be tagged as ‘Loan Fee’

I hope that makes sense! :blush:

#3

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