Liquid lending deposits and withdrawals are treated as taxable by default. You can choose to treat them as non-taxable by configuring your settings to align with your individual tax situation.
For an in-depth guide about lending transactions: Understanding Lending Transactions in CoinTracker
How to Change the Default Tax Treatment for Lending Transactions to Non-Taxable
- Navigate to the Settings page and click the Tax tab
- Scroll down to 'Treat liquid lending as non-taxable' and click the toggle to On
- When configuring this setting, you will be asked for an effective start date. Any transactions marked as 'Lending deposit' or 'Lending withdrawal' after this date will not be treated as taxable events.
- The default date is set based on the user's country's tax year. For example, a US user configuring this setting on April 15, 2023, would see the option to set the effective date as January 1, 2023, as the US tax year runs from January 1 to December 31.
Turning Off the 'Treat liquid lending as non-taxable' Setting
You can choose to turn off the non-taxable setting, and provide an end date if needed, at any time.
What about illiquid lending transactions?
By default, these transactions are non-taxable, with no additional settings required. The platform manages the tracking of asset lots, adhering to your chosen cost basis accounting method (e.g., HIFO, LIFO).