I'm of the belief that drawing from CDPs isn't a taxable event, but when collateral is sold during liquidation, that is taxable. With that said, none of the major crypto tax reporting software I'm aware of have support for CDPs. I'm quite familiar with using bitcoin.tax to calculate capital gains, and thought I'd try entering all CDP draws of x Dai as a purchase of x Dai for x USD. I entered CDP wipes of x Dai as a sale of x Dai for x USD. Additionally, I leave the transaction hash of the draw/wipe in the notes field. Do you see anything wrong with this? My main concern is paying the correct amount of tax, and it doesn't bother me if the report contains buys/sells I've fabricated to support use of CDPs.
It seems odd to me that bitcoin.tax calculates an overall capital loss for my Dai trades when I do this. Perhaps it's due to selling Dai for ETH, and then buying Dai with ETH after ETH dropped significantly. I'd expect this to be a capital loss in the ETH section though...
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