I was under the impression that wallet to wallet transfers were not taxable events as long as they both belong to the same person. For example if I transfer bitcoin from Coinbase to Binance and both wallets are mine, that would not be tracked as a taxable event.
However, I was told today that the transfer fees associated with such a transaction would still be taxable. Let’s say I send $100 worth of Bitcoin and pay $1.00 in transaction fees… this person told me that the transaction fee would be considered a “sale” of sorts and would be a taxable event, so if the value of my bitcoin was higher than when I purchased it, I would need to report the transaction fee gains on my taxes.
I was wondering if CoinTracker works this way. I used it for my taxes last year and made a number of wallet to wallet transfers that involved fees and I don’t recall seeing any of those reported on my tax return that CoinTracker generated for me… so I’m looking for some clarity here.
No comments:
Post a Comment