Why Koinly Expenses are not reported in Outlays and expenses - CANADA

[amirnik]

Hi
(Applicable to Canadian)
I was wondering why reported yearly Expenses(Cost, Margin trade fee) are not reported automatically in Outlays and expenses of generated Schedule 3 report?

[amirnik]

However total proceeds of disposition and adjusted cost base are automatically filled in.

[Jiecut]

Transaction fees should be included in the schedule 3, maybe not necessarily in the outlay column. These things reduce your capital gains.

Now regarding expenses and costs, these things might be able to be deducted against income depending on your situation. And that’s more beneficial for you than deducting against capital gains.

[Mark_DesLauriers]

I agree with Jiecut. Transaction fees labelled or tagged (properly) as Costs, Margin Fees or Interest Payments are not intended to be used for the types of expenses that come into play in your T1 Schedule 3 which is focused on capital gains (or losses), i.e they are not expenses or outlays directly associated with the acquisition or disposition of capital assets.

Rather, in Canada expenses labelled as Costs, Margin Fees or Loan Payments are fully deductible against investment and other income (including taxable capital gains) and thus are more beneficial (as Jiecut noted). The place to record your Costs, Margin Fees or Loan Payments is on the “Statement of investment income, carrying charges, and interest expenses” which used to be called Schedule 4 a few years ago.