Trying to report your Biswap transactions to the IRS?
Because decentralized exchanges don’t provide tax forms to users, it can be difficult to calculate your capital gains and income.
In this guide, we’ll break down everything you need to know to report your Biswap taxes to the IRS — including a simple three-step process to help you report all of your Binance Smart Chain taxes in minutes.
Biswap is a decentralized exchange built on the Binance Smart Chain (BSC). The protocol allows users to swap cryptocurrencies, add and remove cryptocurrencies to liquidity pools, and earn staking rewards.
Biswap leverages BSC to offer industry-low transaction fees — currently at just at 0.1%.
In the United States, cryptocurrency is subject to capital gains and ordinary income tax.
For more information, check out our complete guide to cryptocurrency taxes.
At this time, the IRS has yet to give clear guidance on DeFi taxes. As a result, there are different approaches to reporting certain types of transactions — such as adding/removing cryptocurrency from liquidity pools.
For more information, check out our complete guide to DeFi taxes.
At this time, decentralized protocols like Biswap are not required to report to the IRS. It’s still unclear whether Biswap and other decentralized exchanges will be subject to 1099 reporting requirements due to the American infrastructure bill.
However, it’s important to remember that all Biswap transactions are publically viewable on the Binance Smart Chain. In the past, the IRS has worked with contractors like Chainalysis to track blockchain transactions.
Keeping track of all of your taxable swaps and trades through any decentralized exchange can be challenging. The problem only becomes more difficult if you’ve transferred cryptocurrency between different exchanges and wallets, as you may have trouble determining your cost basis.
Cryptocurrency tax software like CoinLedger can help. The platform aggregates all of your transactions between different wallets and exchanges, helping you generate a comprehensive cryptocurrency tax report in minutes.
Here’s how CoinLedger can help you report your Biswap taxes in three easy steps.
And that’s it! Once you’re done, you can connect any other wallets and exchanges you’ve used during the tax year and generate your crypto tax report with the click of a button!
Want to get a head start on reporting your Biswap taxes before the tax deadline? Get started with CoinLedger, the platform trusted by more than 300,000 investors worldwide.
Get started with a free preview report today — there’s no need to enter your credit card details until you’re 100% sure your information is correct!