DavidD66
Expert Alumni

Investors & landlords

It isn't hard to find postings making the case that funding fees and margin costs should be included in cost basis, but I've not been able to find anything authoritative that allows it. I think you can make a better argument for including funding fees; My personal opinion is that they should be included in cost basis.  Margin interest is an investment expense and is‌ potentially deductible on Schedule A, and shouldn't be included in cost basis.  That said, I recommend that if you are going to use Koinly you follow their lead.  If you were audited, you wouldn't want your supporting documentation (your Koinly reports) to not agree with your tax return.  

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