Sushiswap Tax Reporting
TokenTax connects to Sushiswap for easy crypto-currency trade tracking and tax filing.
What is Sushiswap?
Sushiswap is a decentralized finance (DeFi) protocol built off of Uniswap with additional features. Like Uniswap, Sushiswap allows you to swap ETH-based assets and automatically contribute to liquidity pools built on Ethereum contracts.
The Sushiswap protocol streamlines decentralized token swaps. Any user can create trade pairs and supply their crypto to Sushiswap liquidity pools. To exchange tokens, you can select the token you want to trade and the token you want to acquire. The same as Uniswap, you can create new liquidity pools and trade pairs easily.
Sushiswap has some different features than Uniswap with respect to providing incentives for liquidity providers.
What are the Sushiswap tax implications?
One downside of using Sushiswap is that you may not realize that transactions on Sushiswap are subject to taxes. Many times DeFi users think about taxes on their exchange trades, but not on their DeFi protocol transactions.
Your Sushiswap transactions are recorded on public ledgers. Even if regulators cannot trace them now, they will certainly have the technology in the future to look back. It is therfore important to disclose your Sushiswap trades and pay any tax liability you may have incurred on your earnings from providing liquidity.
How do Sushiswap taxes work?
Every crypto to crypto trade and crypto to fiat transaction is a taxable event. This means that all of your trades on Sushiswap need to be reported on your taxes with you paying the relevant tax bill.
Trades of one token for another and from tokens into fiat currency are all subject to capital gains or losses taxes. Remember that crypto is considered property by the Internal Revenue Service (IRS) in the United States and many international tax authorities as well. Your earnings for providing liquidity to Sushiswap pools are also taxable as income.
You can learn more about crypto taxes in the United States and other countries in our guide or ask us anything on our chat function. To learn more about taxes on all decentralized finance platforms, read our DeFi crypto tax guide. This will be particularly helpful if you were yield farming across protocols.
Can crypto tax software simplify your DeFi taxes?
Given that your activity on Sushiswap is subject to taxes, it is important to be able to consolidate all of your trades (from all DeFi protocols and exchanges) into one tax calculation.
Our TokenTax tax dashboard platform automatically pulls all of your Sushiswap transactions into your account, aggregating them alongside your other transactions. Our software automates the calculation of your capital gains and losses, as well as exporting your tax forms in a variety of formats.
At TokenTax, many of our team members have traded on both Uniswap and Sushiswap. We successfully filed our taxes for Sushiswap predecessor Uniswap and are ready to help you with your taxes for both protocols.
Our proprietary minimization accounting and year-end tax loss harvesting support can help you save money on taxes. Reach out to us for help on our chat function (lower right corner), and we will handle your individual tax situation.
Importing a Sushiswap API into TokenTax
Add any ETH address(es) that you've used for Sushiswap to TokenTax and your Sushiswap transactions will be imported.