Why Is Record-Keeping for Transaction Fees Important for Cost Basis?

Transaction fees, such as exchange trading fees or network gas fees, can generally be added to the cost basis of the acquired cryptocurrency. This increases the cost basis, which in turn reduces the calculated capital gain or increases the capital loss upon disposal, ultimately lowering the taxable profit.

Accurate record-keeping ensures the trader maximizes this deduction.

Does Physical Delivery Create a Taxable Event, and If So, When?
What Are the Tax Implications of Cash Settlement versus Physical Settlement?
What Is the Economic Argument for Keeping the Block Size Limit Small?
What Is the Tax Implication of a Margin Call on a CFD Position?
What Is a “Taxable Event” in the Context of Cryptocurrency Disposal?
What Are the Record-Keeping Requirements for Spot Crypto Trades versus Futures Trades?
What Are the Tax Implications of a Crypto-to-Crypto Trade?
How Do Gas Fees on a Decentralized Exchange Impact the Calculation of Capital Gains/losses?

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