Cryptocurrency Q&A
Is there tax on Dex crypto?
Is there tax on Dex crypto?
BonsaiBeauty
Fri Oct 25 2024
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6 answers
1192
I'm wondering if there are any taxes applied to transactions or holdings of Dex crypto. I need to know this information to understand the full cost of using Dex crypto and to ensure I'm compliant with tax regulations.
6 answers
Bianca
Sun Oct 27 2024
Trading on Decentralized Exchanges (DEXs) involves the swapping of digital assets.
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OpalSolitude
Sun Oct 27 2024
Each swap of digital assets, including crypto-to-crypto trades, is viewed as a taxable event by the Internal Revenue Service (IRS).
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Valeria
Sat Oct 26 2024
This means that whenever you trade one cryptocurrency for another, it is subject to tax regulations.
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Riccardo
Sat Oct 26 2024
For instance, if you trade Bitcoin for Ethereum, the transaction is considered taxable.
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Tommaso
Sat Oct 26 2024
Similarly, exchanging stablecoins for another cryptocurrency also attracts Capital Gains Tax (CGT).
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