Post
Topic
Re: CoinTracking - Profit/Loss Portfolio and Tax Reporting for Digital Currencies
by
LJF007
on 03/12/2017, 19:33:37 UTC
Hello,

New Pro user here.  This subject was kind of touched upon in earlier posts, but I didn't find an answer so please bear with me:

As we know, a common situation is moving crypto from one place to another... a non-taxable Withdrawal and non-taxable Deposit (not a taxable Trade and not a taxable Spend). 

Also common is that a fee for that service is also incurred upon Withdrawal (say from an exchange when moving a crypto balance to a wallet).  The send amount is gross in CT, the fee amount is noted properly in CT, and the subsequent Deposit amount is less (net) in CT.  All that is correct.

But unlike the effective inclusion of fees in CT taxable events of Trade and Spend, I have yet to see how that service fee "spending" is to be carried over to the tax reporting side of CT.  I see the incurred capital gains reporting (for Trades and Spends).  I see the income reporting (mining and general income).  On the expense side, I see areas for inclusion of certain other costs.

Seems like when I incur a fee to simply move crypto from exchange to wallet, I am purchasing a service at that moment and so performing a taxable Spend at that moment for just that fee amount.  Subject to the FIFO (or other) taxable sale treatment as any other Spend.  Small as it is.  The movement of the net crypto amount (after that service fee) is certainly a non-taxable event.  But I have not figured out if CT has an automated mechanism for me to include the movement fee "Spend" as a taxable event in the tax reports... or if I am just not understanding something about this. 

After gain/loss tax treatment (if I'm right that is), seems it is ALSO then a tax expense deduction?  Being a cost to move the crypto around?

Thanks in advance for your thoughts!