Crypto to crypto trade with fees

I have the cost basis and proceeds for regular purchases and dispositions of crypto with transaction fees figured out but I’m confused about crypto to crypto fees. Cointracker isn’t importing exchange transactions with the fees properly so i am inputting them manually.

Example: Exchanged 0.128485 bitcoin for 3814.11 usd coin. Coinbase says: Subtotal 3814.11$, total 3907$, fees 92.89$. At the time of transaction, 1 bitcoin was 30408$ and 1 usdcoin was 1$.

I have two ways about going with it i guess?

1: I say proceeds from 0.128485 bitcoin was 3814.11$ and cost basis for the 3814.11 usd coin was also 3814.11$. I apply the fees to the proceeds. This makes 1 bitcoin at the time of trade 29685.25$ (lower than the market value of 30408$) and 1 usd coin at 1$ (equal to market value)

2: I say proceeds from 0.128485 was 3907$ and cost basis for the 3814.11 usd coin was 3907$. I apply the fees in my cost basis. This makes 1 bitcoin at time of trade 30408$ (equal to market value) and 1 usdcoin 1.02$ (more than market value)

Which one, if any, is correct. Do i take out the fees from my proceeds in an exchange or do I add the fees in my cost basis of buying usd coin?

1 Like