Let's say I buy 1 btc for $101 dollars and $100 is spent on btc and $1 on exchange fees and GST.
Then I transfer it from binance to my hardware wallet(because nobody should keep significant amounts on exchanges)which costs 0.01 btc. Since the value of btc is worth $100 dollars the cost of transferring it is $1(0.01btc) miner fee.
then after a couple months I transfer from my hardware wallet when 1 btc is worth 200 which costs 0.01 btc to send to my binance account.this results in a miners fee of $2.
I then sell 0.98 btc when the price is $200 for $196. However binance takes a $1 fee so I end up with $195.
Amount that my btc is worth (Base) = 100Exchange fee and GST paid to buy btc = $1Fee when withdrawing = 0.01 btc worth $1.Fee when depositing = 0.01 btc worth $2.Exchange fee when selling = $1Cost base = 100+1+1+2 + 1 = 105
Sold 0.98 btc = $195 (after $1 exchange fee which reduces from $196 to $195)Gains = proceeds - cost base = 195 - 105 = $90
Does this look correct? The guides on the site are not helpful because they don't take wallet transfers into account and nobody who owns more than 1k of crypto should ever leave it sitting on an exchange due to the possibility of a hack. I found this thread from an old user and the result he got doesn't look right even to him. Does the formula used to calculate cgt break if the result is negative?
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Buy 1 ETH @ $100.
Withdraw 1 ETH.
Withdrawal Fee of 0.5 ETH. Price at withdrawal is $100 per ETH. So no capital gain on 'sell as fee'.
Remaining Amount of 0.5 ETH.
Sell 0.5 ETH @ 100 for $50.
(proceeds) - (cost base + fees) = capital gain.
Generic answer method, that is normally used for 'additive AUD fees'. i.e. with no regard to a fee coming from the original cost base.
($50) - (100 + 50) = - $100
My method. Split original buy in half. 0.5 of ETH is used as a $50 withdrawal fee. Add this to remaining 0.5eth/$50 of the reduced cost base. Sell remaining 0.5 ETH for $50.
($50) - (50 + 50) = - $50
Obviously to me it's the 2nd method. I lost $50 overall from buy to sell. It's basic maths to know if I pay 100, have a fee of 50, and sell for 50, that I lost $50.
I certainly didn't lose $100.
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