Hello! I need some clarification on how fees are handled in the system so that I can complete my taxes. This is semi-urgent and I would love it if someone gets back to me soon!
I have made a couple of mock transactions (in a new cointracker account created with a different email) just to see how different scenarios are handled in the system before I go through my many, many tedious real transactions. I have already gone through the cointracker forums but couldn’t find clear answers.
So here are the main scenarios i’m having trouble with:
Fees that are paid in a third currency (e.g. BNB in the binance smart chain) are not reflected or deducted in the balance dashboard or holdings in the performance tab. Should I be creating an extra transaction to account for the fee, so that the fee is deducted from my balance in order that future cost bases will be correct.
To clarify it would look like this in a mock transaction.
Example: I trade 2000 BUSD for 1 ETH there’s a 0.01 BNB fee associated with the transaction. Since the fee is NOT deducted from my BNB balance in the cointracker.io system, all future BNB cost basis would be incorrect.
Here i made a separate transaction with BNB in sent side so that your system deducts it from my balance. Then I edited proceeds to 0 because it is not a sale, as it’s a fee and a loss.
Is this the correct way to go about it?
The second scenario is transfer fees.
Here’s an example:
Does cointracker account for the cost basis of the ETH fee when i received it? or does it factor the fee in as a sale for 0$ in proceeds to recognize it as a capital loss?
Thank you for taking the time to help me out. Awaiting a response from the team!