Crypto gas fees taxes

Metal cryptocurrency wallet

This larger standard deduction highly. This same example applies inversely.

we accept bitcoin

What are Gas Fees? - Ethereum Gas Fees Explained
Since the IRS treats cryptocurrency as property for tax purposes, crypto fees are tax deductible. Any time you buy, sell, trade, or mine crypto and incur. If you're buying, selling or trading crypto - you can add the gas fee to your cost basis. If you're earning rewards and paying gas fees - you cannot add the gas fee to your cost basis. The fee itself falls under capital gains (i.e., is classified as a buy/sell).

account_circle Goltikazahn

calendar_month 01.09.2023

The excellent and duly answer.

Bitcoin hackers arrested

But in most circumstances you will also need to consider the capital gains realized on the ETH you are spending for gas. The concept of gas was introduced to compensate miners for their work done on maintaining and securing the blockchain. You see, most people who buy and sell crypto are classified as investors. Investopedia is part of the Dotdash Meredith publishing family.