Hi,
I transferred $50 worth of Ethereum from one crypto wallet I own to another crypto wallet which I also own. The two wallets are held at different crypto exchanges (I'm not sure if that matters).
From what I can see, the transfer doesn't have to be reported for federal tax purposes. However, the part I don't understand is this: The receiving exchange charged me a hefty fee for completing the transfer. If I don't have to report the transfer itself, how do I account for the fee when I sell/trade the Ethereum someday in the future? It's almost as if I sold a stock and my gross proceeds from the sale excludes the fee, which would be reportable for tax purposes...but at the same time, if I don't need to report the Ethereum transfer...and around I go in circles.
Thanks,
Jason
