Transaction fee counted as a capital gain

Koinly Support
1

Screen Shot 2021-02-15 at 22.28.35
Screen Shot 2021-02-15 at 22.28.352156×688 62.3 KB

Take the screenshot above:

  • sold 0.2 BTC at 794,000¥ = 158,800¥
  • the cost basis is 158,004¥
  • the transaction fee is 238.20¥

The gain should be 158,800¥ - 158,004¥ - 238.20¥ = 557.8¥
However the gain calculated is 158,800¥ - 158,004¥ + 238.20¥ = 1034.2¥

Really? I made a gain of 100% on the transaction fee?

2

https://discuss.koinly.io/t/binance-trading-fee-imported-as-separate-sell-item-and-thus-counted-gain/1525/6?u=jaymdee89

3

This is still a problem - gains on fees

4

Actually I don’t think this is incorrect, just stupidly annoying. They’re taking the exchange fees in crypto and not in Fiat. Technically I think you do incur capital gains/loss when you convert the exchange fee to fiat equivalent. The amount of capital/gain loss you incur would be based on your cost basis method.

In the example above, he didn’t pay 238.2¥ in transaction fees as he stated, he paid 0.0003 BTC. When he paid this fee, the 0.0003 BTC is then converted to to 238.2¥ (taxable event). His cost basis method calculated the 0.0003 BTC as having 100% gains.