Defi and Taxes – Swaps
Swaps on a decentralized exchange are treated as trades for tax purposes.
Token swap is actually just a fancy name for trading one cryptocurrency or token like ETH for another token like DAI on a decentralized exchange. Therefore swaps can be treated the same way as trades for tax purposes.
For detailed information on tax reporting of swaps, please check our full article DeFi Cryptotax Guide: Swaps, Liquidity Pools, and Yield Farming.