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49952250 No.49952250 [Reply] [Original]

I deposited Link to AAVE and received aLINK in return. I then borrowed USDC to use for daily living expenses

Is that considered a taxable event?

>> No.49952285

>>49952250
no, those are 2020 tax rules

>> No.49952684

No it's 1 way to avoid taxes.

>> No.49952726

>>49952684
I don't want to get audited

>> No.49953877

>>49952250

Stop being a fucking asshole.

>> No.49954027

>>49952250
It's functionally equivalent of depositing something into a bank account. You aren't really trading anything, you're just getting a statement that says how much you have and how much you can withdraw.
Is that how your tax authorities see it? They probably aren't even aware of the issue. Or if they are, they almost certainly haven't issued any guidance. So you can interpret it in a reasonable way without breaking any rules.
Just look up their page on crypto taxes and see if they have anything on the topic.

>> No.49954061

>>49952250
The USDC is a loan. When you cash out for USD, you don't make profit. I think that's how it works at least.

>> No.49954118

Just don't pay taxes lol

>> No.49954791

>>49954118
I transferred at least 1m usdc to my coinbase to my bank account. They'll come for me

>> No.49954844

>>49954791
1m all at once without you even contacting the bank first?

>> No.49955031

>>49954844
Throughout 2021 and 2022

>> No.49955113

>>49955031
Usually it's good practice to actually contact your bank prior to cashing out to let them know what you're going to do and give them all the needed transactions/info before you cash out in order to be safe that your bank account won't suddenly be halted for suspicious activity. When you contact your bank and they get all they need in terms of info, then you can literally freely cash out millions at once if you want.