I am the Sheep Brother. A charming older brother~
Last night, I specifically used a US IP to access Morpho lending, threw in 0.1ETH as collateral and borrowed 200 USD in USDC, planning to try my luck. As a result, I filled in the wrong address for the declaration, and the system popped up saying the compliance check failed, which made me so mad! I reconnected the VPN and switched nodes, it took about ten minutes to get through. Once I got in, I successfully borrowed with a super low interest rate, now I'm just lying back and watching the earnings.
Regarding Morpho lending taxes, US users, don't panic. The key is to avoid selling assets to bypass major taxes; borrowing itself does not trigger capital gains, super practical.
1. Deposit assets as collateral to borrow money, not counted as a sale, no capital gains tax, and interest expenses can still deduct part of the income.
2. Earned borrowing rewards are taxed as ordinary income, with the tax rate depending on your total income. Remember to use tools like Koinly for automatic calculations.
3. Zero threshold for protocol fees, Morpho has no additional taxes; gas and network fees are the real pitfalls, choose L2 chains for the best savings.
4. Compliance is key; Morpho integrates with Coinbase API, US users can directly use cbBTC as collateral to avoid IRS scrutiny risks.
@Morpho Labs 🦋
Wow, I was thrilled when I figured it out! This pitfall guide is simply life-saving; the tax savings are enough for a few big meals. Predicting that next year's DeFi tax rules will be more relaxed, Morpho users will double their earnings while lying down. Everyone, give it a try! Share in the comments the tax traps you've encountered, retweet to help your buddies wake up, and let's all avoid risks and chase profits together!
#Morpho
Disclaimer: The content of this article is based on publicly available market information and does not constitute investment advice. The crypto market is highly risky; please make prudent decisions. DYOR!
@Morpho Labs 🦋 #Morph $MORPHO
