Transaction fee treatment as a cost basis

Forum|Forum|2 years ago
November 15, 2023
1 reply
13 views

Are the transactions fees for moving from wallet-to-wallet or from Coinbase to cold wallet and back could be added to the cost basis?

Ask the Experts - Crypto - Nov 2023

DashonnonH

Level 5

Hi Lulukern123, I hope your day is going well.

You can add the fees or commissions paid for original purchase of your coins to the cost of your coins. But, you cannot add fees for transfers from one wallet to another to cost basis.

The info below if from a turbo tax article

When calculating your gain or loss, you start first by determining your cost basis on the property. Generally, this is the price you paid, which you adjust (increase) by any fees or commissions you paid to engage in the transaction. This final cost is called your adjusted cost basis.

I added a couple of resources below

https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions

https://turbotax.intuit.com/tax-tips/investments-and-taxes/your-cryptocurrency-tax-guide/L4k3xiFjB