Adding and removing liquidity to automated market making platforms like Uniswap create what we call "Liquidity Pool Transactions". If your liquidity pool transactions take place on a BSC or ETH wallet that’s been connected to TaxBit, these transactions will not be imported automatically. Liquidity Pool transactions and yield farming activities are not currently supported by TaxBit.
At this time, we have not received guidance from the IRS on how to treat Liquidity Pool transactions. for now, they will not be included with your other capital gains and losses on your taxes. Your Liquidity Pool transactions will be missing from your TaxBit account, but this is completely normal and won’t have a negative effect on your taxes.
We do support many other kinds of DeFi transactions, so feel free to check out THIS article on the decentralized transactions that we do support.
Still have questions? Send us an email at email@example.com or chat with us using our live chat feature, and we'd be happy to help!