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33 sats \ 1 reply \ @freetx 9h \ on: Make Fun of Coinbase Bitcoin Backed Loans! lol
Trust me, I'm no fan of CB, but I don't think this presents a tax issue
The borrower provides collateral and receives USDC. Whatever intermediate steps coinbase performs are not the borrowers responsibility (nor in their control).
Furthermore, if cbBTC is 1:1 value to BTC then I don't think there will be any taxes due by coinbase (just like trading USD for USDC doesn't create any taxes due).
Regardless if any taxes are due, they would be the responsibility of coinbase not the borrower.
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10 sats \ 0 replies \ @grayruby OP 9h
Swapping from BTC to wrapped BTC is a taxable event. Just like if you swapped from BTC to any other crypto. Even though they are meant to be pegged 1:1 it is still taxable.
"Regardless if any taxes are due, they would be the responsibility of coinbase not the borrower." You can take that up with Coinbase but I don't think you will get a positive result.
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