In most jurisdictions, a transfer of cryptocurrency from one exchange to another, or between your own wallets, does not trigger a capital gain on the cryptocurrency being transferred. If our app is showing a capital gain, this can be due to one of the following reasons:
1. The transaction is incorrectly categorized.
If this is an "unknown" transaction, you need to import the receiving wallet address or the exchange so we know you transferred funds between your own accounts. Alternatively, you can recategorize this transaction category as a "send", which signifies a transfer of funds.
2. You disposed of cryptocurrency when paying for the fee on the transfer.
Generally speaking, when you dispose of cryptocurrency to pay for a fee you are triggering a capital gain event on the value of the fee paid in cryptocurrency. The capital gain (loss) is realized on the difference between the buy and sell price of the cryptocurrency before "paying" for the fee. The total value of the fee is then added to your cost basis (in the case of a trade). It is unclear if miscellaneous fees, such as those associated with a transfer between funds, can be claimed as an expense unless you are operating as a business. In some jurisdictions, this has already been explicitly disallowed and we suspect more will follow. You need to check with your accountant if you can claim these types of expenses.