This is just a helpful reminder to reach out to your accountant on how to deal with crypto and DeFi trades.

Every country will treat them differently, and sometimes each state will treat them differently as well.

I recommend keeping a log of EVERY transaction you make in DeFi, including a link to the transaction on the blockchain, for organization purposes. (I’ll show you how to find the transaction ID links)

For example, a swap on Uniswap or Pancakeswap are technically taxable events in the US since you are selling one token and buying another. The IRS isn’t completely clear about this though at the moment, so it is up to you on how conservative you wish to be in your accounting. Again, I HIGHLY recommend starting a conversation with your tax accountant about these decisions.

It’s worth knowing that Coinbase and Binance send reports to the IRS of how much you withdraw, so don’t take it lightly.