1inch.exchange Tax Reporting
TokenTax imports 1inch.exchange data for easy cryptocurrency trade tracking and tax filing.
How to handle taxes for decentralized trades on 1Inch.exchange
TokenTax is partnering with 1inch.exchange to make crypto taxes easy for DeFi traders. 1inch.exchange simplifies DeFi trading by providing an easy-to-use platform to get the best prices for decentralized trades. Users can set limit orders and earn interest, all while seamlessly connected via their wallet.
1Inch users can automatically upload their DeFi trading information into TokenTax. This makes it simpler for investors and traders to calculate their gains and losses, as well as generate their tax forms, than with any other crypto tax software provider.
Taxes on decentralized finance transactions can be complex
It is most important to remember that, when dealing with DeFi taxes, it is best to consider the basic tax guidelines provided by the IRS or other national tax authority. Then you can view your trading activity through that lens to determine how to calculate your tax liability.
To start off, all crypto to crypto transactions and crypto to fiat transactions are subject to taxes in the United States. This can be nuanced because remember that if you are trading tokens, it is your trades (not the underlying trades of assets in the case of portfolio tokens) that are considered taxable events.
Interest earnings are also subject to taxes. Additionally, taxes on lending activity differ depending on whether you are the lender or obligor. If you are yield farming, you can see how your taxes can quickly become complicated because each trade is a taxable event, and all earnings are taxed as well.
At TokenTax, we are proud to be the market leader in DeFi taxes, having developed solutions to handle all of your DeFi crypto tax needs. You can import your data from 1Inch to calculate your interest income and capital gains or losses. For more information, please read our DeFi crypto tax guide and contact us on our chat function (lower right corner) for help with your unique tax situation.
1Inch is a DeFi aggregator that minimizes prices for transactions by splitting orders among multiple DEXes in one single transaction. The 1Inch interface lists the current rates in a convenient sorted table so that you can compare across exchanges.
In one platform, you can swap tokens and set limit orders with no maker fees. 1Inch also allows you to earn the best interest rates across different liquidity and lending pools. The aggregator facilitates ethereum purchases through Moonpay and connects to your wallets for seamless trading in one platform.
Seamlessly connect your 1Inch transactions to the TokenTax dashboard following the instructions below to calculate how much tax you owe on your DeFi earnings.
Importing a 1inch.exchange API into TokenTax
To import your trades made via 1Inch, add your ETH wallet address(es) to TokenTax. Via your ETH wallet(s), TokenTax will pull your transactions.