The page that summarizes tax before selecting tax prep option as well as the PDF report calculate gains by subtracting fees from the net of the gain and loss. This fee amount seems different than the fee amount included on the cost basis of individual transactions and does not seem to appear to be summarized anywhere. The amount shown here is different than the amount when looking both the summary transactions included on Form 8949 or on the individual Turbo Tax transactions in the Excel file (neither of which include the fee amount and hence result in a much higher gain). Can you please explain this fee amount and where the details can be found/how they should be incorporated into my filing?
Hey guys, so for the fee issue, a fee in our system is actually a separate transaction in our software.
So let’s say you want to send 100 BTC to another wallet and it has a fee of 1 BTC to send.
The correct way to add this into our system would be the following:
Transfer 99 BTC with a fee of 1 BTC
Balance Change = 100
A common issue is that users think that the fee is subtracted from the amount and will get this issue:
(This is just a hypothetical example with easy math to make it easier to understand.)
Also, consider this article about Calculated vs Actual Balance - Calculated and Actual Balance on the Accointing.com Platform
Matt - Thanks for your response, but I don’t believe it’s addressing my issues. As an example, my short term gains is different in 3 places. If I total the gain for all of my transactions in the Turbo Tax file for short term transactions, the total gain is $4,284.92. In the PDF report it is showing as $3,098.37 and in the screen on your website it is showing $3,053. While are all 3 of these different? It seems to be at least somewhat related to the fee column shown as $1,455.81 in the PDF. When looking at the detailed transactions also in the PDF, the total in the fee column is significantly less than this amount. Please advise.
Congrats! Your trades in 2021 created gains of more than $3,000.
Short term gainsProfit realized from the sales, exchanges or other disposals of personal investment property that has been held for one year or less
Long term gainsProfit realized from the sales, exchanges or other disposals of personal investment property that has been held for more than one year
Total gainsThe total of your short term plus long term gains. This is the entire gain or loss from your portfolio for the tax year
We are planning to change out we calculate fees soon.
So what tax calculation for 2021 is currently accurate?
I will respond here about the new fee changes when they are ready
You should be able to use the Form 8949 for now
can we get clarification on this please? i posted a similar question elsewhere that i will repeat here:
I am worried i am not reporting fees/staking income correctly with the only data provided is the filled out 8949 showing trades.
Also, with “lost” it isnt showing on 8949 report. where do we report this? “other losses in tax sotftware”?
I was under the impression that fees are tax deductible from gains. Where do we see this and report it out on US tax report.
Put another way are the exchange/defi fees accurately placed into the cost basis of the acquired tokens and thus accurate on these 8949s? I remain confused why my sumary says $700 but 8949 is different (by a lot).
I did find the summary pdf “full tax report 2021” that lists summary of trades/swaps/fees and I seems to have this ongoing discrepancy. Similar to orignal poster concerns
in my example:
Summary page says I have $722 in short term gains - this is what i presumed would be my taxable amount
however, generated 8949 shows $6686 in short term gains
but the “full tax report 2021” pdf shows $5920 in gains
which is it? how to resolve? based on the 8949 data entries in tax software will be taxed on $6686. but why isn’t it $722?
i think the APIs look like your first example
Matt any update on this. We are getting close to reporting deadline.
- Fiat-to-crypto fees don’t show up as part of gain-loss at all and overstates gain
- Crypto-to-crypto fees are deducted immediately and not added to the basis
- Crypto-to-fiat is done correctly
- Internal fees are done correctly
(This is for the USA)
There really isn’t proper guidance either.
We have just generally accepted principles based on the IRS’ non-authoritative guidance.
(And when I say generally accepted principles, I mean based on what you do with fees and other acquisition costs of property within property tax law in general.)
They haven’t commented specifically on crypto fees one way or the other
Question 4 in their FAQ on crypto just directs you to the publication about sales and dispositions of “assets”
but again, these FAQs are not authoritative unlike the property tax law is because that’s in the code.
A lot of platforms are having issues due to the lack of clarity from the US government.
If this is unacceptable, consider filing for an extension as we plan to change how we handle the fees.