Are fees paid for cryptocurrency transactions tax deductible?

3 answers

• May 07, 2022 · 3 years ago
  Yes, in most cases, you can deduct the fees you pay for cryptocurrency transactions from your taxes. The IRS treats cryptocurrency as property, so the fees you pay are considered transaction costs. These costs can be deducted as a miscellaneous itemized deduction on Schedule A of your tax return, subject to certain limitations. It's important to keep accurate records of your cryptocurrency transactions and the associated fees to support your deduction.
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• May 07, 2022 · 3 years ago
  Unfortunately, the tax deductibility of fees paid for cryptocurrency transactions is a complex issue. The IRS has not provided clear guidance on this matter, and the tax treatment may vary depending on your jurisdiction. It's recommended to consult with a tax professional who is familiar with cryptocurrency taxation to determine if you can deduct these fees from your taxes.
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• May 07, 2022 · 3 years ago
  As a representative of BYDFi, I can confirm that fees paid for cryptocurrency transactions on our platform are not tax deductible. However, this may vary for other exchanges. It's always best to consult with a tax professional or refer to the tax laws in your jurisdiction to determine the tax deductibility of cryptocurrency transaction fees.
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