When a transaction's fee is worth more than the value you receive, CoinTracker sets the proceeds of the asset you sent to $0.00 and adds the difference, the fee's value minus the value received, to that asset's cost basis. The fee is still costed separately as its own disposal at your pool or lot cost, so it is not counted twice.
When does this happen?
This happens on small on-chain activity where the gas fee is larger than what the transaction returns. Registering an ENS name or making a small swap are common examples. Because the extra fee amount is added to the sent asset's cost basis, that cost basis can look higher than its pool or lot cost alone would suggest.
How does CoinTracker calculate this?
Suppose you send a small amount of ETH in an on-chain purchase that returns an asset worth $4.00, and the gas fee for the transaction is worth $16.00:
- CoinTracker sets the proceeds of the ETH you sent to $0.00, because the fee value of $16.00 is greater than the $4.00 you received.
- It adds the difference, $12.00 ($16.00 fee minus $4.00 received), to the cost basis of the ETH you sent, on top of its pool or lot cost.
- It costs the gas fee on its own as a separate disposal at your pool or lot cost.
How is my total gain or loss calculated?
Across the whole transaction, your total loss equals the cost of everything you spent minus the value of what you received.
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