You can find this toggle under Settings → Tax → Tax rules section. Switching this toggle might change the results of your Capital Gains Report. The default setting depends on your tax jurisdiction. The choice of settings may impact your tax liability, so it's essential to consult with your accountant or local tax professionals about your situation before making any changes.
‘Swap’ Category vs ‘Treat Crypto-to-Crypto Trade as Non-Taxable’ Toggle
Feature | Impact | What It Does | When To Use It |
Only the transaction categorized as “Swap” | Transfers the cost basis and purchase date from the original asset to the new one | Use for specific trades you want to treat as non-taxable (e.g., You want to treat ETH to WETH trades as non-taxable but all other trades remain taxable) | |
Tax Toggle: | All crypto-to-crypto “Trade” transactions | Treats all crypto-to-crypto trades as non-taxable disposals | Use if your tax laws consider all crypto trades as non-taxable |
Toggle On
When the toggle is switched on, all your crypto-to-crypto trades are non-taxable. The cost base of the sell side of the asset will be transferred to the buy side of the asset. See the example below:
Date | Category | Sell | Buy | Market value | Cost base | Capital gains |
Jan. 1, 2022 | Buy | - | 1 ETH | $4,000 | $4,000 | - |
Feb. 1, 2022 | Trade | 1 ETH | 10 BNB | $3,000 | $4,000 | - |
Mar. 1, 2022 | Trade | 10 BNB | 3,500 USDT | $3,500 | $4,000 | - |
Apr. 1, 2022 | Sell | 3,500 USDT | - | $3,500 | $4,000 | ($500) |
Note: USDT is cryptocurrency.
Toggle Off
When the toggle is switched off, all your crypto-to-crypto trades are treated as taxable disposals and acquisitions. The capital gains/losses are realized in the transaction. See the example below:
Date | Category | Sell | Buy | Market value | Cost base | Capital gains |
Jan. 1, 2022 | Buy | - | 1 ETH | $4,000 | $4,000 | - |
Feb. 1, 2022 | Trade | 1 ETH | 10 BNB | $3,000 | $4,000 | ($1,000) |
Mar. 1, 2022 | Trade | 10 BNB | 3,500 USDT | $3,500 | $3,000 | $500 |
Apr. 1, 2022 | Sell | 3,500 USDT | - | $3,500 | $3,500 | $0 |
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