This page explains how transfer fees are handled in cryptact.
Contents
1．Handling of Transfer Fees
When you pay transfer fees in cryptocurrency, the default behaviour is to simply reduce the quantity. This is because in some cases, individuals are not allowed to claim them as losses.
However, you can change the setting so that they are included in the loss. Before using this setting, please consult with your tax advisor or accountant.
2．How to Configure the transfer fees Setting
Go to the Ledger tab and click the "Settings" icon located to the left of the "Add transactions" button.
In the "Expense transfer fees" under the Advanced settings, enable the setting (to blue) and click "Update".
3．Display on the Transactions
When you upload a transfer fee with the above setting enabled, you will end up with the following two transactions on the ledger:
①Price×Transfer Fee Qty (Action="Transfer Fee") --> generates a loss
②A sell trade that sells ①'s quantity for the market price (Action="Sell") --> generates a P&L
② is automatically generated when you upload ①. In the transaction details, it is flagged as follows.
The P&L for ② is calculated as (selling price - book price)*quantity, therefore, depending on the book price, ② would generate a profit. However, if you add the P&L for ① and ②, you will see that a loss of (book price*quantity) is recorded.