The Miscellaneous Expense Report lists standalone Fees, Approval, and Expense transactions that can be used for a business. Keep in mind that if a fee is added to the cost basis, it can’t be treated as an expense and vice versa.
Guidance from various tax jurisdictions remains unclear whether the fees can be claimed by businesses or investors. We suggest that you consult with your accountant on how to use the Miscellaneous Expense Report when filing in your jurisdiction.
How to read the expense report?
At the top of the Miscellaneous Expense Report, you will find the Report Summary, which will look similar to the below image.
This is a summary of all the expenses that you have disposed of during the selected financial year or period.
Below the summary page, you will see a table showing the transactional data that displays each currency, trade type, and expenses in the selected currency.
This part of the report includes all the fees that are not added to the cost basis, Approval transactions, and Expenses. The data for these transactions will then be broken down into five columns:
The currency that was responsible for the expense event.
The date and time the expense was disposed of.
The category of trade that was responsible for the expense. Currently, only fees and expenses are listed.
The amount of the asset that was disposed of as an expense.
The value of the expense that was disposed of. This will be displayed in your local currency (e.g., USD, AUD, EUR)
What is added to the expense report?
Fees attached to a Transfer / Send (between your wallets or exchanges) transactions are added to the expense report.
Transactions categorized as Fee transactions are added to the expense report.
Transactions categorized as Expense and Approval transactions are added to the expense report.
What is not added to the expense report?
Fees forming part of a Trade / Buy / Sell transaction are added to the Buy or Sell transaction depending on the currency of the fee. These fees are therefore excluded from the expense report as they are associated with the Capital Gain/Loss Calculation.
These Fee transactions include fiat-to-crypto, crypto-to-crypto, and crypto-to-fiat. For more information about how the cost basis is calculated on CTC, please read this guide.