Resources/exchanges/PancakeSwap Tax Guide

PancakeSwap Tax Guide

In the recent wave of new Decentralised Finance (DeFi) protocols, PancakeSwap has taken the world of Decentralized Exchanges (DEX) by storm and become one of the most popular exchanges for DeFi users. Steering away from the Ethereum chain which most DApp’s are built on, PancakeSwap operates on the Binance Smart Chain (BSC), but remains similar in design to the SushiSwap and Uniswap protocols on Ethereum.

PancakeSwap’s native token ‘CAKE’ uses the Binance Smart Chain token standard BEP-20. However, other tokens such as the ethereum ERC-20 may also be brought over via bridging (e.g. Binance Bridge). This essentially ‘wraps’ other tokens as a BEP-20 so that they can be used on PancakeSwap.

Quick Start

PancakeSwap is rising in popularity, with hundreds of millions USD worth of crypto-to-crypto trades settled by the platform every day. However, a common problem that users encounter is how to calculate taxes on these transactions. Fortunately, CryptoTaxCalculator has developed an integration with PancakeSwap to recognize, categorize and report all taxable transactions. Simply follow the below steps to automate your PancakeSwap taxes.

  1. Locate and copy the Binance Smart Chain wallet address that you have used for trading via PancakeSwap.
  2. Log in to CryptoTaxCalculator, and navigate to the ‘import data’ section. Here, you can enter PancakeSwap into the search field or scroll down to find it manually
  3. Enter your address here, provide an optional nickname and click ‘Add Wallet’

PancakeSwap import wallet address
PancakeSwap import wallet address
4. Once your Wallet has synced, you will see a green tick indicating that CryptoTaxCalculator has successfully pulled in the transaction history associated with this wallet address from the Binance Smart Chain.

Wrapping Up

Once you have imported your data, CryptoTaxCalculator can calculate your portfolio breakdown and tax obligations. If for some reason you can’t upload your transactions you can add them individually on the review transactions page.

The information provided on this website is general in nature and is not tax, accounting or legal advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider the appropriateness of the information having regard to your own objectives, financial situation and needs and seek professional advice. Cryptotaxcalculator disclaims all and any guarantees, undertakings and warranties, expressed or implied, and is not liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or Consequential Loss or damage) arising out of, or in connection with, any use or reliance on the information or advice in this website. The user must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information in this website is no substitute for specialist advice.

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