Hi,
I import my csv for a crypto. Once transaction that was recognized as Cost but the transaction is when I moved this crypto to another wallet that belongs to me. Please see below
You sent xxx crypto worth $ to someone. Your cost-basis for xxx crypto has been calculated using FIFO (universal) from the investments listed below. Your final capital gain for this transaction is $.
Hi Kevin, Sounds like you transferred your crypto from one exchange or wallet to another wallet of yours. You typically pay gas or other transaction fees when you make a transfer of crypto. Paying transfer fees or any fees using crypto is a disposal of the crypto and triggers a capital gain or loss for tax purposes in most jurisdictions around the world.
Having said this, Koinly does provide an option in Settings called “Treat transfer fees as disposals?”. This feature is turned on by default in most jurisdictions but you can turn it off if you don’t want transfer fees to be taxed at the date the fee is incurred.
Hi, I did not. But why is this marked as a Cost and not a transfer?
In Koinly sometimes the transfer fee shows up as a separate transaction from the transfer of the crypto. Koinly tags this as a Cost because it is a fee. I find this happens with transfers from an exchange wallet to a Ledger wallet. If you look at the 2 transactions you may find that they have the same hash and time stamp. Regardless whether the transfer fee is part of the transfer tx or recorded separately as a Cost, it will be treated as a disposal of the transfer fee and subject to a small amount of capital gain or loss.
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