How to Handle Cryptocurrency Gas Fees

[stevetone]

When sending cryptocurrency from one place to another (e.g., from an Exchange to a hardware wallet), a fee is paid* (e.g., Gas).

It is my current understanding (admittedly, crypto tax treatment is not very settled yet) that the "transfer" is not a taxable event; it simply increases the Cost Basis for the cryptocurrency.

How would you recommend that this type of transaction be entered in FM? Ideally, there would be a commission-like field on the Transfer Out, but I do not think that is possible.

My interest is in being able to run a Capital Gains report at the end of the year that accurately represents the cost basis.

I've been using FM for years on equity and bond trades, but I can't seem to get a handle on how to record crypto transfers.

Thank you.

* the fee is paid in crypto. i.e., the received amount is less than the sent amount.

[Mark]

Hi stevetone,

There are probably other ways to do it, but I would recommend just recording the Transfer Out for the shares that left the source account, and the Transfer In (with the fewer shares) at the original cost basis. For example, let's say you bought $1,000 worth of a coin and received 1 coin. When you transferred it, you paid 0.1 coins in gas fees, so you ended up with 0.9 coins (shares). Record it like this:

Transfer out: 1 share
Transfer in: 0.9 shares with an OOP and Tax basis of $1,000

[stevetone]

Thank you. That sounds like a plan!