# Taxation of Gas Costs
**URL:** https://discuss.koinly.io/t/taxation-of-gas-costs/5554
**Category:** Tax Questions
**Created:** [June 14, 2021, 7:38pm UTC](https://discuss.koinly.io/t/taxation-of-gas-costs/5554 "2021-06-14T19:38:40Z")
**Posts on this page:** 3
**Page:** 1
### Author:  [@tvllgrvss](https://discuss.koinly.io/u/tvllgrvss)
#### Post date: [June 14, 2021, 7:38pm UTC](https://discuss.koinly.io/t/taxation-of-gas-costs/5554/1 "2021-06-14T19:38:40Z")
Wondering how Gas Costs are taxed.
For example. If I pay $1000 for 1 ETH and then it goes up to $2000, and then use some of it (0.01 ETH) to make a transaction, do I pay taxes on the $10 difference in price?
By default, it is marked as a “cost” but then it also says +X$ gain as well.
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### Author:  [@sraftery](https://discuss.koinly.io/u/sraftery)
#### Post date: [June 14, 2021, 9:26pm UTC](https://discuss.koinly.io/t/taxation-of-gas-costs/5554/2 "2021-06-14T21:26:45Z")
I think it is both a cost and a gain.
When you bought 1 Eth, 0.01 of that was $10
When you make your second trade, you use 0.01 Eth which you originally paid $10 for, but now it is worth $20. So you made a $10 gain on that transaction, for which you must pay your tax
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### Author:  [@system](https://discuss.koinly.io/u/system)
#### Post date: [August 13, 2021, 9:26pm UTC](https://discuss.koinly.io/t/taxation-of-gas-costs/5554/3 "2021-08-13T21:26:56Z")
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