PancakeSwap Taxes Guide

Changing taxes can be easy when you know the steps needed to become tax compliant without putting in a lot of extra work.

PancakeSwap is now a leading decentralized exchange built within the Binance Smart Chain (BSC) network, distinguishing itself from the Ethereum-based DEX.

With BSC, PancakeSwap provides faster speed and lower transaction costs for traders looking to dive into DeFi. Gas fees (transaction costs) are a huge problem on Uniswap and other decentralized exchanges based on ETH, while PancakeSwap brings this innovation into the space.

Additionally, PancakeSwap offers more than token swaps, with liquidity pooling, crypto farming, and more. Today, we cover all taxes involved when trading on PancakeSwap.

Do you pay taxes on PancakeSwap?

In short, yes.

Token swaps are trades between cryptocurrencies, which are taxable events in the United States. Each time you transfer one token for another on PancakeSwap, you incur a taxable event, subject to capital gains taxes.

In the United States, any exchanges between cryptocurrencies or cryptocurrencies to FIAT are taxed by the IRS on both centralized and decentralized exchanges in the same way. You must report the gain/loss on each token swap on your tax returns.

PancakeSwap also offers liquidity pooling and the opportunity to earn interest or rewards when purchasing cryptocurrencies, which are taxable events in the United States. We’ll cover this in more detail later in the article.

How are swaps taxed? Decentralized exchange taxes

Token swaps on PancakeSwap, Uniswap, SushiSwap or any other decentralized exchange are taxable events in the United States. Although trading on DEXs can be more anonymous than trading on centralized exchanges like Binance, the obligation to report cryptocurrency tax remains.

Every token swap, which is basically a trade between cryptocurrencies, must be reported to the IRS, and you have to determine the profit or loss for each trade.

How to report PancakeSwap deals on taxes?

In the US, you must report the profit/loss for each crypto-to-FIAT trade or crypto-to-crypto trade. As a result, if you are trading tokens on PancakeSwap, you will have to report all gains/losses for those trades. You will have to track and report your trades on Form 8949 and Schedule D of your Form 1040. For more information, see this guide on how to report your crypto taxes.

How to track PancakeSwap deals for taxes?

If you are a crypto trader and have thousands of transactions in many DEXs, you may feel confused to keep track of them all. However, we have an easy solution.

You can use crypto tax software like CoinTracking to easily import PancakeSwap deals using our BSC import tool. You can easily copy your Binance Smart Chain address – the one you use for PancakeSwap – and paste it into CoinTracking.

Learn how to import PancakeSwap trades into CoinTracking:

Within a few minutes, you can import all your trades into PancakeSwap, and CoinTracking will automatically calculate the profit/loss for each trade. For each tax season, you can generate appropriate tax reports.

Do you have to pay taxes on Uniswap deals?


If you trade cryptocurrency on Uniswap, you will be subject to taxable events on each token swap. Cryptocurrency trades on Uniswap are taxable events, and are subject to capital gains taxes.

On Uniswap, you can do more than token swaps. For example, provide liquidity for a trading pair. However, the tax implications of mining liquidity and trading tokens are different. See the Uniswap Tax Guide to clarify any questions.

How to track trades on DEXs like PancakeSwap?

CoinTracking supports many decentralized exchanges based on BSC and ETH (DEXs). If you are using Uniswap, SushiSwap or 1 inch Exchange, you can follow the same process but using your own Ethereum address.

You can simply paste the ETH address you use into Uniswap or other DEXs and paste it into CoinTracking. Within a few minutes, you will get all the Uniswap trades you have imported and calculate your profits/losses.

How is PancakeSwap cash taxed?

Liquidity pools are still a new topic from a US crypto tax perspective, but you should be aware of their implications. If you use the PancakeSwap liquidity pool, you will get new tokens from the liquidity provision. There can be two ways:

  1. Learn about the taxable trade between the cryptocurrency you deposit in the PancakeSwap liquidity pool and the LP token received. The sale of the cryptocurrency that you place in the liquidity pool will have a profit / loss, which you need to report. This is an easier method than the following alternative.

  2. Treat the receipt of an LP token as a loan, which is not a taxable event in the United States. We encourage you to review our DeFi Tax Guide for further clarifications on this issue.

How are crop farms taxed at PancakeSwap?

Earning rewards from crop farming is a taxable event in the United States. When you win your LP tokens at PancakeSwap Farms, you will receive interest in the form of crypto rewards, which will be taxable.

When you receive bonuses, you must determine the fair market value (in US dollars) of the bonuses and report it as income on your tax return.

Gaining staking rewards adds to your total income for the year, and is not taxed as capital gains like token swaps. Check out our crypto tax guide for all the explanations on how to get your crypto rewards.

how to Does PancakeSwap your taxes?

  1. Import your PancakeSwap deals with BSC Importer for CoinTracking.

  2. Calculate the capital gains on your trades, according to IRS approved accounting methods.

  3. Generate tax reports with CoinTracking.

Best DeFi Tax Software: CoinTracking

CoinTracking covers all your tax needs for decentralized exchanges like PancakeSwap or Uniswap.

When using BSC-based DEXes like PancakeSwap, you can paste your BSC address into CoinTracking and import all your trades.

When using ETH-based DEXes like Uniswap or SushiSwap, you can paste an ETH address into CoinTracking in a few minutes. CoinTracking will automatically calculate all trades for you.

Moreover, CoinTracking can easily categorize all your winnings from cryptocurrency bets, liquidity pools, earn crypto interest, and much more. Here are some things CoinTracking can do for you:

  1. Import (API & CSV) your trades from 110+ exchange/ conservative.

  2. Over 25 advanced reports, including Coins We give you a tax free rate.

  3. automatic capital gains, according to 12 Accounting methods (eg, FIFO, LIFO, HMRC, ACB), accepted all over the world.

  4. complete generation tax reports In your country.

Do you want to file tax returns for cryptocurrency without errors? Check out our full service in the US.

CoinTracking also offers a full service for US traders. A CoinTracking expert from Polygon Advisory Group, a leading US crypto tax company, will review your account, fix any errors, and ensure your tax returns are submitted flawlessly.

Clarify all your doubts about cryptocurrency taxes:

  1. DeFi Taxes: The Complete Guide.

  2. Uniswap Tax Guide.

  3. Is cipher wrap taxable?

  4. Donating cryptocurrency: is it tax deductible?

  5. Do you pay taxes on stolen, hacked or lost cryptocurrency?

  6. FIFO for Crypto Taxes? The implications of accounting methods.

  7. Crypto Tax Loss Harvest: Here’s What You Need to Know.

  8. The three most crypto-friendly countries.

  9. NFT Taxes: The Complete Guide.

  10. NFT Guide 2021 (with taxes).

  11. Is bitcoin taxable? The Ultimate Guide to Taxes for 2021.

  12. How do you reduce your crypto taxes?

This post is part of the Crypto Taxes AMA series. Follow the weekly AMAs on Twitter as our expert CPA Sharon Yip answers your crypto tax questions. You can download over 25 AMA crypto tax reports for free.

Disclaimer: All information provided above is for informational purposes only and should not be considered professional, legal or tax advice. You should do your own research or consult with a professional financial advisor when investing.

# non-swap liquidity tax #Swaptax pie #PancakeSwapl Liquiditypooltaxes #cryptotaxtool # non_replacements # pancake # Uniswapl Liquiditypools #DeFitaxsoftware #PancakeSwaptradestaxes # taxes #cryptotaxsoftware # Liquidity taxes #PancakeSwapyieldfarmingtaxes # pancake # Hahaha # taxes # cryptotax #PancakeSwap #DEXtrades #cryptotaxestool #PancakeSwaptransactions # change the Image # apricot #Features

Leave a Comment