@matrix mining fees should absolutely not be considered realized capital gains. Mining fees have absolutely nothing to do with the value of the coin itself.
@crunklord420 @matrix I disagree. you are disposing of an asset at a higher price than what you paid. transaction fees are realized gains. getting your transaction confirmed is a service that you pay for. it makes no difference if you are paying for a transaction confirmation or a footjob. how do you account for the disposal of your asset when it goes to a transaction fee? does it just vanish? you got the money somewhere and then you got rid of it. how do you explain that?
if you buy a fentanyl lollypop for 20 MATIC and the transaction fee is 0.01 MATIC, you are buying two things at the same time. a fun afternoon, and a validated database entry.
if you buy a fentanyl lollypop for 20 MATIC and the transaction fee is 0.01 MATIC, you are buying two things at the same time. a fun afternoon, and a validated database entry.
@goatmeal @matrix the transaction fee is not relative to the value of the coin at all. It's (sometimes) based off of congestion of the network, which itself is also unrelated to the value of the coin.
The best analogy I can possibly imagine is like if you're planing lumber and you count waste material as if you actually sold it at market rate and therefore you should be taxed capital gains based on how much lumber you bought as opposed to how much you actually sold. It doesn't even make sense under unrealized gains.
The best analogy I can possibly imagine is like if you're planing lumber and you count waste material as if you actually sold it at market rate and therefore you should be taxed capital gains based on how much lumber you bought as opposed to how much you actually sold. It doesn't even make sense under unrealized gains.
@crunklord420 @matrix your analogy is wrong. transaction fees are not a waste material. the network charges you a fee to move your money. it's like sending someone a dildo on ebay and paying for postage. it won't get there if you don't pay for postage. the fact that the price of the shipping label is subject to fluctuations is immaterial and so is how the postage price was calculated. you are still buying a shipping label and you are paying for that shipping label with an asset that was worth a different value when you acquired it.
still doesn't answer my other question too. when you pay network transaction fees, how do you get that money off your books? accounting software purpose made for cryptocurrency taxes always has you getting rid of network transaction fees in a way that incurs capital gains or losses. you need to get rid of the money somehow or your FIFO calculation will get screwed up.
still doesn't answer my other question too. when you pay network transaction fees, how do you get that money off your books? accounting software purpose made for cryptocurrency taxes always has you getting rid of network transaction fees in a way that incurs capital gains or losses. you need to get rid of the money somehow or your FIFO calculation will get screwed up.
