How fees are handled within CoinTracking

TL;DR: CoinTracking handles two types of fees:

• Same-currency fees are built into the trade, adjust the cost basis or proceeds automatically, and are not shown separately in reports.

• Third-currency or separate fees (e.g., fees in BNB when trading ETH/BTC) are recorded as independent taxable sales and appear explicitly in reports. An advanced setting can incorporate third-currency fees into trades, but requires precise matching data. For tax deductibility of fees, consult a tax advisor.

• If you import trades via API or exchange file import, the fee may already be netted into the amount you received. CoinTracking can still display the fee as a separate line for transparency. This does not mean it's counted twice. As long as your final balance/holdings match your exchange account, the import is correct.

Overview

CoinTracking distinguishes between two main types of fees:

• Integrated Fees: Fees that are part of the trade, usually in the same currency as the trade itself. These are included in the cost basis or proceeds but are not shown separately.

• Third-Currency or Separate Fees: Fees in a different currency or imported as standalone transactions. These are treated as taxable sales.

Note: CoinTracking does not display income-related expenses. If you want to deduct trading fees for tax purposes, consult your tax advisor.

1. Fees Incorporated Into Trades

If the fee is in the same currency as the purchase or sale, it's automatically factored into the cost basis or proceeds.

Examples:

• Buy 1 BTC | Sell 15.01 ETH | Fee 0.01 ETH

• Buy 0.999 BTC | Sell 15 ETH | Fee 0.001 BTC

• Buy 1 BTC | Sell 50,010 USD | Fee 10 USD

These fees:

• Are not shown separately in the tax report.

• Adjust your acquisition or sale amount directly.

You can review them on the Trading Fees page with daily values.

2. Fees Not Included in Trades (Third-Currency Fees)

Fees in a different currency or entered as a separate transaction are shown explicitly as a taxable “Trade Fee.”

Examples:

• Buy 1 BTC | Sell 15 ETH | Fee 1 BNB

• Buy 1 BTC | Sell 15 ETH | Fee 20 USDT

These are treated as independent sales of BNB or USDT and shown under:

• Sum Fee Short (taxable, short-term)

• Sum Fee Long (tax-free, long-term)

Also affects: Deposit fees, withdrawal fees, and “other fees.”

3. Optional Advanced Setting: Include Third-Currency Fees in Trades

In Advanced Settings, you can enable the feature that applies third-currency fee values directly to the trade:

• This reduces sale proceeds or increases cost basis depending on trade direction.

• Requires precise timestamp + identical exchange name (or TradeID if imported).

Examples:

• Buy 1 BTC for 25 ETH + Fee 1 BNB → 25 ETH is reduced by BNB’s value.

• Buy 1 BTC for $50,000 + Fee 1 BNB → Cost basis increased by BNB’s value.

4. Why does my API/exchange import show the fee separately even though it's already netted in?

When trades are imported via API or exchange file import, many exchanges report the amount you actually received after the fee has already been deducted (a net amount). CoinTracking may still list the fee as its own line item for transparency and easier review, but this does not mean the fee is being counted twice.

To verify everything is correct:

• Check your overall balance/holdings for the affected coin against your exchange account.

• If the balance matches, the import is correct, even if the fee display looks different from what you expected.

This applies regardless of whether the fee is shown as an integrated trade fee or as a separate trade/sale entry. The underlying accounting is not duplicated.

5. Best Practices for Manually Entering Trades with Fees

When entering trades manually (rather than importing), keep the following in mind:

• Fee currency: Always enter the fee in the currency it was actually charged in. Do not arbitrarily convert or set the fee currency to USD or another fiat currency if that's not how it was charged. This can distort your cost basis and tax calculations.

• Buy amount: Enter the buy amount as the actual amount of crypto you received. If a fee was charged in the same currency as the buy, record it as a separate same-currency fee entry. CoinTracking will then automatically reduce the effective amount and adjust your cost basis accordingly (see Section 1).

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