The IRS has stated that any costs that are incurred for acquiring/selling property can be included within cost basis.
This means that crypto fees are tax-deductible. This means that when you buy, sell or exchange crypto, any fees associated with the transaction should be deducted from the sale price
Zenledger adds these fees into your cost basis calculations. To calculate the capital gain for a transaction, it adds the fee to the cost basis of the fair market value of ETH in USD on the day he made the trade.
Let's look at an example.
Mary buys 1 ETH for $1000 and pays a fee of $10. His cost basis for his 1 ETH is $1,010. He later exchanges 1 ETH for 2000 USDT with the market price of 1 ETH being $2000 at the time of this trade.
Mary pays a capital gain of $990 rather than $1,000.
You can also manually mark transactions as fees if they are not included within the transaction itself, for example fees for transactions executed from your wallet on Shapeshift or Changelly.
Zenledger will add these to the overall cost basis
You can also manually mark transactions as fees if they are not included within the transaction itself, such as fees for transactions executed from your wallet on Shapeshift or Changelly.
This information is for informational purposes only and not for the purpose of providing financial, legal, investment, accounting, or tax advice. You should contact your CPA or other qualified tax professional to obtain advice regarding your particular issue or problem.