Loretta P
Employee Tax Expert

Get your taxes done using TurboTax

Hello @lulukern123,

 

Not every transfer of funds (coins) is considered a sale.  Sending bitcoins from one wallet to another wallet (online or offline) is only a transfer and not considered a sale as the user still has possession of the coins.  The fees associated with the transfer of bitcoins/funds on/off exchange or to and from another wallet would be reported on Schedule A under miscellaneous deductions; however, due to the tax law changes in 2018 they are no longer deductible.  

 

You need to keep good records of your transfers in case you are ever audited.  

 

Here are two links that you may find helpful:

Is Transferring Crypto from One Crypto Wallet to Another Crypto Wallet Taxable? 

Can I subtract transfer fees from my capital gains? 

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