Questions tagged [exchanging or swapping]

Daniele Tue Jul 16 2024 | 7 answers 1649

Could you elaborate on how Capital Gains Tax (CGT) is applied when individuals or businesses engage in the exchange or swapping of crypto assets? Does the tax apply regardless of whether the swap is done for a profit or simply for asset diversification? Are there any exemptions or specific conditions that could affect the taxability of such transactions? Additionally, how is the value of the crypto asset determined for CGT purposes, especially considering the volatile nature of the cryptocurrency market? Clarifying these aspects would help individuals and businesses better understand their tax obligations when dealing with crypto asset swaps.