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Title: XLM conversion to another format using btc or USDT with Binance? Post by: jimlaman8 on May 18, 2021, 01:09:37 AM Im trying to avoid a usa gains tax (i think) by converting xml to a middle man coin to get to an end coin (example: sol). I had been using btc on other exchanges by first converting the amount i wanted to btc then that to the final currency.
Is that the best method here? Or is it just the same to convert xlm to USDT (i would think that would trigger gains tax)? It was my understanding coin to coin there was no gains tax only "added income 1099" tax worst case, or maybe thats only if you withdraw? Any idea why im not seeing the xlm pairs like xlm/btc in the trading area of binance.us? Thanks in advance Title: Re: XLM conversion to another format using btc or USDT with Binance? Post by: Oshosondy on May 18, 2021, 05:39:06 AM What gives the total freedom are noncustodial wallets. If you convert to unstable coin first thinking you will be able to avoid tax, you are just deceiving yourself, if you think it is working for you, it is clear that it is not working, you are only thinking it is working, anytime you are converting to stable coins or anytime you want to withdraw, are means you can pay the tax after you gained, the tax will be taken from a percentage gain not the amount you invested, if there is any loss, there will be no tax report until you are gaining. It will be better to comply to the law than to be avoiding to pay tax, it is wrong as it is a law in your country to pay crypto tax.
Title: Re: XLM conversion to another format using btc or USDT with Binance? Post by: TryNinja on May 18, 2021, 05:41:03 AM I'm pretty sure you have to pay the gains tax if you swap a coin to another, not just when you swap something for USD/USDT. Basically, there is no escaping.
Even BTC to wBTC is a gray area (wBTC is pegged to BTC 1=1). XML -> SOL = tax gains. XML -> USDT -> SOL = tax gains. XML -> ?? -> SOL = tax gains. Title: Re: XLM conversion to another format using btc or USDT with Binance? Post by: Bitcoin_Arena on May 18, 2021, 12:49:43 PM From what I understand, each crypto trade (buying or selling) is a taxable event. So whether you convert XLM to BTC to SOL or XLM to SOL. You will still have to pay the tax on the gains. There's no way around it. Check this out - https://support.binance.us/hc/en-us/articles/1500004561101-Cryptocurrency-Tax-Reporting
Title: Re: XLM conversion to another format using btc or USDT with Binance? Post by: jimlaman8 on May 18, 2021, 02:55:15 PM Yeah this article is useful as well:
https://www.coindesk.com/crypto-tax-2021-guide I dont know where i read it as an income tax event on exchanging cryptos. That said, what do most do on exchanges, so in my example on binance, you have xlm, want SOL, are you converting to USDT first then taking that and buying the SOL, rather than converting to something in between? (I still dont see other xlm pairs on binance.us trading though, like btc, which is strange to me as i see it on other trading exchanges) |