@ivanz
How to leverage Portugal's crypto tax benefits? Here's the TLDR:
Scenario 1:
Day 1: Buy 1 BTC for $100.
Day 2: Swap 1 BTC for 5 ETH. Assume the BTC is worth $150 at this time.
Day 3: Sell ETH for $151.
Swap BTC for ETH is not taxable since it's crypto to crypto, but you'd be taxed on day 3 ETH sale, it'll "inherit" the basis of $100, so you'd pay cap gains on $51.
Scenario 2:
Day 1: I buy 1 BTC for $100.
1 year + 1 days: I "swap" 1 BTC for 5 ETH. Assume the BTC is worth $150 at this time.
1 year + 2 days: I "sell" $ETH for $151.
Swap BTC for ETH is not taxable since it's crypto to crypto, AND the ETH gets a new basis at $150 since BTC was held for more than 1year. You'd be taxed on 1 year + 2 days ETH sale, so you'd pay cap gains on $1.
A safe way to ensure no tax liability is swap coins to a stablecoin since it still counts as crypto, and wait for a year to convert it to fiat.
I'm not a tax lawyer or accountant, please consult a professional if you need personal advice.
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