DugandRupe on Nostr: Yeah like the side chain, so, bear with me, but going from btc to liquid is a trade. ...

Yeah like the side chain, so, bear with me, but going from btc to liquid is a trade. Meaning that rather than when you buy something with bitcoin and incurring taxes on your bitcoin cost base, you’d only incur a price different from when you bought the liquid (a month or so). If the price dipped a lot from your purchase you could log a loss. If you were spending btc, you would likely only be able to log a loss if price went below the cost basis of a first in first out buy (which could be years ago). I do my taxes and based on what I know, this makes sense to me, but not heard others say this though so “not tax advice, I’m not an accountant” 🫡🙌