Benefits of Ethereum (ETH) Gas Fees?
I recently started preparing on my tax return but I struggle with it every year especially my crypto stuff.
I have read bunch of articles and did some homework and saw this interesting topic.
ETH gas fees are tax deductible?
I am not CPA or crypto tax expert or anything so don't trust me on anything... this is just me.
But it seems like ETH gas fees are tax deductible... 🤯
I didn't even think about this before but if you sell tokens for some money and spend a lot of money on gas then you can add that gas fee to the cost, it seems like.
For example, if you sold 1ETH for $2000 then it is a $2000 gain, but then you spend $500 for the gas because of the high cost of transactions or failed transaction is pretty common, or you had to pay extra gas fees to speed up the transaction or something then $2000 - $500 = $1500 is the gain, not $2000 because transaction fees eat up some of the gain.
Airdrops and claiming rewards are capital gains and they are taxed income but a lot of times, you have to pay transaction fees for the rewards so gas fees can be used to lower capital gains.
I thought this was pretty interesting that high cost of ETH gas fees can work for me, not against me.
This is kind of a huge headache since you have to keep track of each transaction and gas fees...😬
But in my case, I am pretty holding all my crypto and I don't need to worry to much because my "gains" are not realized yet.
Good thing is that my crypto portfolio grew bigger over the year but it hasn't been realized as gain or loss.
When that happens, I have to go through all the transactions and do gains and loses... ugh, not looking forward to that.
Tax rules are different for different country so it is always good to DYOR though 😉
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Thanks for this article! I am also new to crypto so this is also an issue for me! seems like the gas fees work like trading fees in the stock market, no?
Yeah that is kind of how I think about it too
this is well detailed about eth gas fee. it's just that many crypto users are moving to the bsc chain because of the high increase of eth gas fee.
yeah i moved to bsc too but i have done bunch of ETH transactions last year so you have to think about those things when you do tax though... not now
One thing I noticed is causing many users to have a restriction of using ethereum nowadays is the gas fee which I believe the Ethereum Blockchain should work upon
Very good article, I who know only a little about finance was able to buy it very well. Thanks for sharing it
outstanding article. I didn't even think about this direction in terms of transacting with ETH. Keep providing value, I actually enjoyed this.
I understand your point friend, you are finding a positive side to those commissions that eth handles, it applies to countries where they are strict with tax payments.
Thanks for sharing very interesting.
Etherium gas fee during transaction has actually been one of the major reasons I don't transact with etherium tokens and this is why I mostly engage more with BSC due to the cheap fee involved.
Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead ❤️💕♥️