I bought crypto in 2021. Never sold anything. But I did use defi exchanges like Uniswap and Pancake to trade crypto for some altcoins. Now I'm doing my taxes online at Turbotax and they let you import your tax files through the big exchanges like Coinbase, Gemini, Binance, and Kraken. Will they try to tax me for the exchanges I did on defi sites like Uniswap and Pancake? How is this going to work if they don't even acknowledge the Defi exchanges on their online forms? Technically, every time you sell, or swap/trade cryptocurrencies, it's a taxable event. Do I need to report my swapping of ETH for some shitcoins on Uniswap and Binance that I'm holding now? Or is it a situation like a babysitter or illegal alien worker where she is, according to law, supposed to report the cash she's being paid under the table but she doesn't unless the parents are reporting it in their taxes? Or like how torrenting music/movies is illegal but nobody really pays it much attention? So my question is, exchanges on Defi swaps like Pancake and Uniswap are "under the table" right? Swapping on Defi is not a taxable event?
TLDR: Is swapping shitcoins on Defi (pancake/Uniswap) a taxable event or should I not report it in USA?
Isn't the whole purpose of defi so that it can't be traced and thus, untaxed until you sell? Motherfuckers are out here running massive crypto scams and I'm struggling to understand my taxes here.
Liam Brooks
Defi isn't untraceable. The point of defi is getting around centalized exchanges who cheat to benefit the big guy. Besides, you're gonna have to explain how you got your crypto once you sell for fiat, so if you can't provide records for your first fiat -> crypto purchase you're fucked.
Justin Murphy
Koinly
Oliver Russell
Now do you realize crypto's a CIA owned ponzi scheme? The brainwashing was too effective.
Austin Jones
Fellow burger here. I'm reporting everything to the best of my ability but it's a fucking nightmare. You can probably get away with not being entirely accurate on defi until you cash out through a CEX
Adrian Parker
I think every coin is a pyramid scheme but I still bought into it. This looks promising. Thanks. I've been logging every purchase and swap in my personal records including the prices and stuff. I'm pretty sure every time you swap to another coin, it is counted as net gain or net loss as capital gains/property. So you have to know what price you bought it and what price the coin was at in the market, and the price when you swapped. To determine if you made money or lost money in the swap.
Nicholas Clark
It looks like Coinbase says if you have activity outside Coinbase, we recommend using CoinTracker to prepare to file.
Benjamin Foster
>you're gonna have to explain how you got your crypto once you sell for fiat, so if you can't provide records for your first fiat -> crypto purchase you're fucked. I'm pretty sure they only care when you sell or swap crypto, as these are taxable events. They don't care when you buy crypto as that is just a type of purchase that will only materialize into profit/loss once you sell. There are other methods that might be taxed like income from staking, receiving crypto as a gift but this is really confusing.
Camden Nelson
You gotta prove your cost basis for the asset you sold so profit can be calculated, so you need to prove your initial buy price.
Tyler Davis
You're correct, but I had 3k+ trades last year and bought/sold/held a lot of nfts so it's stupidly complex
Xavier Phillips
I guess. But there are circumstances where you won't know the exact conditions of when the coin came to you like if someone leaves you behind crypto as inheritance. Jesus.
Oh, someone else said it ITT, but koinly was pretty good for me. I think it's within ~10% of my capital gains from my metamask (not accounting for NFTs). Liquidity providing and impermanent loss messes it up a bit but that's okay. Probably paying the $250 or whatever for the "trader" tax package.
Jacob White
As much i am also a late adopter of BTC and want it to fucking dump but yet its dump means more dump for alts. I chose to dump some fiats into rowan, sylo, posi which i can further stake and earn passive income from this market retracement
Noah Ward
fpbp normalfags were a mistake
Jordan Roberts
I had 10,000 trades and 12 wallets All shit coins 872 rugs Have fun IRS
Levi Bell
>TurboTax stop doing business with those Faggots
Justin Reyes
what a degenerate cretin you are
Thomas Hernandez
Every shit coin was sub $5 so after the IRS spends all their manpower figuring out what the fuck I actually did last year (i believe its actually not even possible) the total tax will be $2
Benjamin Green
and without kyc how exactly can they prove that the defy trading was you u retard? inb4 the defi wallet u used has transaction with you kyc'ed cex wallet. so? if someone sends 1 million dollars worth of scam tokens to your cex wallet that actually no one can claim but they rug it and goes to 0 u will owe taxes after those scam tokens kek.
Swapping on DEX like uniswap and pancakeswap is one of the best way to overcome tax becuase it is decentralized, I also use Blockbank for most of my swapping and other DeFi relation activities and investments, this is already in operation in Canada and North America
