There are two kinds of fees in CoinTracking. On the one hand, there are fees that are incorporated into a trade and are thus not shown separately.
On the other hand, there are fees in a third currency or fees that are imported as an additional trade. Those fees are displayed separately and in case of a sale, present a taxable event.
CoinTracking doesn't show income-related expenses. To find out if and which fees can be claimed as income-related expenses, please talk to your tax advisor.
Two examples of fees are explained below:
Example: Fees that are already incorporated into trades:
In trades, fees are included if the currency of the fee is the same as the buying or selling currency. The fee is then deducted from the purchase amount or added to the selling amount.
Buy 1 BTC | Sale 15.01 ETH | Fee 0.01 ETH
Buy 0.999 BTC | Sale 15 ETH | Fee 0.001 BTC
Buy 1 BTC | Sale 50,010 USD | Fee 10 USD
Buy 0.999 BTC | Sale 50,000 USD | Fee 0.001 BTC
CoinTracking doesn't show this fee separately in the capital gains report.
The fee is already taken into account in the cost base or in the sales proceeds. This means that the cost base was increased by the fee or that the sales revenue was decreased by the fee.
We don't show these fees as income-related expenses. You can find these fees on the trading fee page with the daily values. Please clarify with your tax advisor whether you can claim them in addition.
Example: Fees, that are not included in trades:
Fees incurred in the form of a third currency or ones that were imported separately are not included in the trade, but are recorded as “Other fee”.
Buy 1 BTC | Sale 15 ETH
Fee 1 BNB
Buy 1 BTC | Sale 15 ETH
Fee 20 USDT
The fee in form of 1 BNB is shown in the capital gains report and the fee report as “Trade fee”. This fee in the third currency is equivalent to a sale transaction. So the capital gains of this trade are shown in the capital gains report under “Sum fee short” and “Sum fee long”.
In addition to trading fees, there are also the following types of transactions which may arise for fees in third currencies:
Withdrawal fee
Deposit fee
Other fee
2. Example with Screenshots (international)
The fee in form of 1 BNB is shown in the capital gains report and the fee report as “Trade fee”. This fee in the third currency is equivalent to a sale transaction. So the capital gains of this trade are shown in the capital gains report under “Sum fee short” and “Sum fee long”.
In the tax report, the gains and losses from the fees are combined with all other capital gains and losses.
We do not show these fees as income-related expenses. You can find these fees on the trading fee page with the daily values. Please clarify with your tax advisor whether you can also claim them.
2. Example with screenshots (Germany)
The fee in the form of 1 BNB is shown in the capital gains report and in the fee report as “Trade fee/Trading Gebühr”. This third currency fee creates a private sale transaction if the holding period is less than one year.
The sum of the gains/losses of these sales of fees are shown in the capital gains report unter “Sum fees short” (taxable) and “Sum fees long” (taxfree).
In the tax report, the gains/losses from the fees are combined with all other gains/losses from private sales transactions.
We do not show these fees as income-related expenses. You can find these fees on the trading fee page with the daily values. Please clarify with your tax advisor whether you can also claim them.
Note: There is a setting that makes it possible to include third currency fees in the trade. This setting can be found under "Advanced settings":
With this function, the value of the fee of a third currency will reduce the proceeds of the trade.
Example:
Example 1: Buy 1 BTC for 25 ETH with a fee of 1 BNB -> The 25 ETH proceeds will be reduced by the value of 1 BNB.
Example 2: Buy 1 BTC for 50k USD with a fee of 1 BNB -> The cost basis of 1 BTC will increase by the value of 1 BNB, once the BTC is sold.
If you want to use the advanced setting for 3rd currency fees in the tax report, the "other fee" transaction can only be incorporated if time to the second and exchange name match when transaction was added manually. Normally those are imported via an importer with a TradeID which enables precise matching with the trade.
Here it is described how you add fees: Entering Fees