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Tax toggle - Treat crypto to crypto trades as non-taxable disposals
Tax toggle - Treat crypto to crypto trades as non-taxable disposals
Layla Huang avatar
Written by Layla Huang
Updated over a week ago

You can find this toggle under Settings -> Portfolio & Tax 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.

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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