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timperry8
New Member

Are cryptocurrency exchange brokerage fees, withdrawal fees and Ethereum network trade fees valid as "Outlays and expenses" on Schedule 3?

 
1 Reply

Are cryptocurrency exchange brokerage fees, withdrawal fees and Ethereum network trade fees valid as "Outlays and expenses" on Schedule 3?

According to the Canada Revenue Agency (CRA), the gain/loss on capital equation is represented as so:

Proceeds of Disposition - (Adjusted Cost Base + Outlays and Expenses) = Capital Gain/Loss

 

As the Outlays and Expenses definition is as follows: "Amounts that you incurred to sell a capital property." You can deduct outlays and expenses from your proceeds of disposition when calculating your capital gain or loss.

 

Therefore, if those Cryptocurrency fees are all frictional fees that pertain to you receiving your Proceeds of Disposition from the transaction, then you are indeed allowed to claim them.

For more information, check out: TurboTax - Capital Gain/Loss

 

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