Gas Fees Are Tax Deductible

When you buy or sell an NFT, don’t forget about those gas fees. They’re tax deductible!

How It Works

When buying: Add gas fees to your cost basis

• Bought NFT for 1 ETH + 0.05 ETH gas = 1.05 ETH cost basis

When selling: Subtract gas fees from proceeds

• Sold for 2 ETH - 0.08 ETH gas = 1.92 ETH net proceeds

Example Calculation

Without tracking gas:

• Sale: 2 ETH ($4,000)
• Cost: 1 ETH ($2,000)
• Gain: $2,000

With gas fees tracked:

• Sale: 2 ETH - 0.08 ETH gas = 1.92 ETH ($3,840)
• Cost: 1 ETH + 0.05 ETH gas = 1.05 ETH ($2,100)
• Gain: $1,740

Tax savings: You reduced your taxable gain by $260!

Keep Records

Save transaction hashes for all purchases and sales to prove gas fees paid.

---

Disclaimer: This content is for informational purposes only and should not be considered tax advice. Consult with a qualified tax professional for your specific situation.