I have a lot of stablecoin to stablecoin trades like USDT → USDC → BUSD that all results in profit/loss. Would it be a mistake to mark these trades as swaps?
More than likely, that would be a mistake but it would depend on your tax jurisdiction. Here in Canada, all crypto to crypto transactions are taxable events (including stablecoins). Even though stablecoins are pegged at 1 USD, they fluctuate constantly around that peg so there are losses/gains when we exchange those. Plus, since 1 CAD does not equal 1 USD, I have gains/losses whenever the CAD/USD exchange rate changes since the CRA requires me to have my cost basis in CAD. It’s a little bit of a nightmare to figure out sometimes.
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