Handling of fees on internal transactions

can we reopen this conversation

I am not sure we have settled this issue. I am seeing the same issue.

example i have is the same issue as OP.

Move ADA from Coinbase Pro to ADA wallet (rounded numbers for ease)
I moved an internal transfer 136.48 ADA with a 0.18 ADA fee paid to CB Pro
CB Pro API only moved 136.30 ADA to my cardano wallet. It causes to API entry to be incorrect “missing funds” error (off by the fee amount of 0.18 ADA) and i then need to ignore API and create a new manual entry with the corrected amounts plus the fee added to bottom to counteract the error. It creates more work.

Is there a better way? and is fee credited correctly as a deduction on taxes when doing this?

and lastly, why dont the fees incorporate into the 8949 form for US taxes. is there another way to account for fees as a deduction on US tax software. this is the other error that i have seen posted. the summary says you own on x gains. but the the 8949 is x+y because it doesnt accounts for lost assets/fees.

in your self filing forms i see it nicely broken into 4 sections:

  1. short and long term trading gains/losses (goes on 8949)
  2. tax relevant income (goes into a 1099 NEC or 1099 INT) - can you confirm this?
  3. margin trading
  4. trading fees (where does this go in US tax filing)?

another example i just made today:

internal transfer of ADA from Voyager Brokerage to ADA wallet

moving all of my 677.8 ADA from voyager to ADA.
Voyager charges a 2 ADA withdraw fee

I manual entry this one as:
675.3 ADA from Voyager to ADA wallet then add a 2 ADA fee

is this correct? if so, works on manual entry cleanly. However, in API the sending side views it as a 677.8 withdraw but receiving only 675.3 hence missing funds error

1 Like

I would need to talk to the team, but here is what I do know.

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
Quantity: 99
Fee: 1
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.)