mStable Tax Reporting
TokenTax connects to mStable for easy crypto-currency trade tracking and tax filing.
What is mStable?
Metastable is a stablecoin aggregator. MStable tokens are tokens that “unite stablecoins, lending and swapping into one standard.” When you mint mAssets, you are effectively trading one crypto for another — for example: USDT into mUSDT.
What are the crypto tax rules for mStable?
Minting mStable tokens is taxed as capital gains or losses for tax purposes because you are trading one token for another. You realize any capital gain or loss you had on the token that you trade away to mint mStable tokens. You are also taxed on the capital gains or losses when you sell your mStable tokens for another crypto or for fiat currency.
Crypto tax software can help you track your taxes
It may be challenging for you to keep records of all your crypto transactions, including those made on mStable. Tax software for cryptocurrency is likely essential for your tax reporting needs.
Our TokenTax platform can automatically recognize all of your taxable transactions, format them, calculate your tax liability through a variety of internationally-accepted accounting methods, and automatically export your tax forms in any format you would like.
Guidance on reducing your tax bill
One of the most important challenges facing crypto investors is recognizing how large the capital gains taxes are on their profits from trading. Particularly with the DeFi bull run of 2020, you may have earned phenomenal profits, but you need to plan the best ways to make sure your taxes do not cut into those profits too much.
The IRS has deemed specific identification accounting as an acceptable capital gains calculation method. Therefore, you can use our proprietary minimization algorithm to calculate your taxable crypto gains from trading.
You should also take a look at your overall transaction history and the tax implications of your trades in a given tax year at year-end to evaluate your estimated tax bill. You can strategically trade before year-end to adjust this bill, but there are some tax planning tools you miss out on if you wait until after the close of the tax year.
Read more about tax loss harvesting and DeFi taxes in our cryptocurrency tax guides, or feel free to ask us questions about your taxes on our helpful chat function (lower right corner).