Moving bitcoin from exchange to self custody, accounting for the fee (sale of bitcoin)say you decide to move your btc. You pay a fee to do so. In the case below the fee is 38,260 Sats. This would be considered a sale of those Sats, therefore you will have to determine the cost basis of those Sats (what you paid for them) in order to calculate your tax consequence...
Am I right or wrong?
The government:
That is the effective fee spread across multiple child transactions (CPFP) 🫡🧑💻
🤷🏼♂️🤔 So I didn't actually pay that high a fee? I thought it seemed high as hell?
You probably paid half of that, the other half is added from the child transaction
👍 Okay so is these fees (sale of bitcoin) something that needs to be tracked. I have no clue where I could even find that?
From exchange to self custody means the exchange may have paid a fee for the transaction. The asset was yours before and after the transfer. There was no selling (“disposition”) to create a taxable event for anyone.
It would be like if you had a storage container shipped from one location to another. The contents of the container were yours the whole time. The fee you pay the shipping company has nothing to do with the container contents.
Here is another article, my last transfer to cold had a fee of 4921 Sats. Tracking this will be a fucking accounting nightmare. Which I guess 99% of you don't, won't or care to do.
