How do gas fees work on exchanges and purchases?

I read in one of your articles that Gas fees on sales and dispositions are deducted from proceeds.

Is the same true for exchanging one asset for another? How do gas fees from purchases get applied to my taxes?

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Gas fees is a cost when you purchase. It should be added to the principal cost to arrive at a net cost. When there is a sale. It is deducted from the proceeds. Can someone at CoinTracker confirm this is happening in the program? Perfect example is if a transactions fails and you are charged a gas fee. This gas fee should be treated as a loss. Correct?

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You are changing it from one asset to another. This means you sold one asset which you received your proceeds less the gas fees. The amount from the sale , you will receive a new asset. The new asset will have its own cost basis.
So if you own like a real estate property. You are going to incur an expense such as repair expense. This repair expense is treated as a deduction against the income. Gas expense operates the same way.
Any other folks have an opinion?

Right now it looks my losses/gains are not taking any of my fees into consideration. I will have a few thousand dollars in fees that I will pay taxes on because they are not being deducted from my gains on unless I can figure out how to make the program deduct them. I can’t imagine trying to figure all that out manually - that’s why I bought this program.

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I noticed the same. Shouldn’t the fees be deducted from the cost basis? For example, in the attached, shouldn’t the cost basis be 200.00 - 2.99 fee = 197.01

Does ANYONE work for Cointracker support? Do you have anyone at all responding to questions about your service? What the heck are we paying for? I do searches for answers to questions like the ones posed in this thread and Cointracker support NEVER answers. This is absolutely pathetic at this point.

This is not good. If you have prior year’s filing. They will need to be refiled with the IRS. This can subject one to an Audit. Try explaining this one.

Cointracker, this is a free community to help one another. Please do not block my post. My writings are factual and I do not write anything inappropriate.

This is so confusing it makes my head hurt. Unfortunately I think some of my transfers the cointracker software never taxed the transfer fee I paid. I didn’t know transferring funds was taxable. To make matters worse there are CPAs that recommend that I just only import the buys and sells into the tax software and leave out the transfers. But transfers are needed I think otherwise contractor doesn’t track the cost bais between exchanges. And to make matters worse I have to many private wallets that don’t link up that I can’t complete my records. I have incomplete records. I can only add all the exchanges into cointracker. With all the missing wallets the software doesn’t work as the chain of transactions is broken. Since there are missing transactions that I can find. And with all the fees for ever transfer, I assume taxes had to be paid. Trying to amend my returns now from the bad CPA advice. But I feel it will just open me up to further audit if I try and correct them. I don’t know what to do other then hire a crypto lawyer at this point.

"To make matters worse there are CPAs that recommend that I just only import the buys and sells into the tax software and leave out the transfers"

Ouch. How else do you track across exchanges/wallet?

"I have to many private wallets that don’t link up that I can’t complete my records."

Me too brother, the only solution that I’m aware of is to create CSV files in Excel for these wallets, in the proper format, and then import them. This requires you to use chain’s explorer software to export a CSV (if you’re lucky) or manually browse through all the transactions on the explorer and copy-paste the transactions to Excel and then export a CSV. Also a pain in the neck to format the CSV properly – from date/time format, column headings, send/receive cell data, to the transaction types so the import into cointracker works.

Whatever you do, import small test batches as individual wallets and don’t lump them into existing wallets or exchange wallets. Rather difficult to undo.

hello - was this ever answered by someone from the Cointracker team? I am looking to get this answered for myself