Scion Finance Tax Guide
This article explains how to file your taxes arising from any transactions on Scion Finance
Summ Key takeaways
- Tax agencies can track your Scion Finance transactions, so you need to file your crypto taxes properly. You owe tax any time you sell, swap, or dispose of your crypto for a profit.
- Scion Finance does not issue tax reports, so you will need to gather the data and calculate taxes yourself.
- Alternatively, you can use Summ, which automatically syncs with your Scion Finance and other crypto platforms to generate a comprehensive tax report.
If you've been using Scion Finance, it's important to understand how your transactions are taxed. DeFi platforms like Scion Finance do not automatically report, calculate, or issue tax forms for you. It's up to users to report their gains, losses, and income.
The good news is that Summ makes calculating your Scion Finance taxes quick and easy by automatically importing your data and generating comprehensive tax reports.
Quick steps
- Create an account on Summ or log in if you already have one.
- Select Scion Finance in the Accounts list.
- Import your Scion Finance transactions by syncing your wallet address.
- Let our software calculate your gains, losses, and income.
- Download your tax report and file it with your taxes.
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Disclaimer: The information in this guide is general in nature and not written for a specific tax jurisdiction or audience.
Do I need to pay taxes on Scion Finance?
Yes, you will likely need to pay tax if you used Scion Finance during the tax year.
You will owe capital gains tax or income tax, depending on the nature of your transactions, and whether or not you receive any token rewards from Scion Finance.
The exact tax you owe will depend on your local regulations and the specifics of each transaction. See our list of local crypto tax guides for details on how cryptocurrency is taxed in your jurisdiction.
How are Scion Finance transactions taxed?
The taxation of DeFi platforms like Scion Finance can vary depending on your tax jurisdiction.
Most countries typically tax proceeds earned from selling investments differently from money earned as income. You may be subject to both capital gains (CGT) and income tax, depending on the nature of your transaction.
Here's how transactions on DeFi platforms like Scion Finance might be treated:
Scion Finance capital gains tax (CGT) events
| Event | Description |
|---|---|
| Crypto-to-crypto trades/swaps | Swapping one cryptocurrency for another. CGT is charged on the proceeds from the sale. |
| Providing liquidity | Depositing crypto into a liquidity pool. May be treated as a disposal. |
| Wrapping tokens | Exchanging one crypto for a wrapped version. May be treated as a swap. |
| Bridging tokens | Moving assets from one chain to another. May be treated as a swap. |
| Paying gas fees | Disposing of crypto to pay network fees. Treated as a sale. |
Scion Finance income tax events
| Event | Description |
|---|---|
| Staking, Yield Farming, or Liquidity Provider rewards | Receiving income for deposited assets. Income tax owed on the fair market value of rewards when received. CGT is owed if you sell the rewards. |
| Interest payments from lending | Receiving interest payments for lending assets. Income tax owed on the fair market value of rewards when received. CGT is owed if you sell the rewards. |
Scion Finance transactions that are not taxed
| Event | Description |
|---|---|
| Borrowing | Borrowing crypto is not typically a taxable event. |
| Staking | Staking crypto is not typically a taxable event. However, any rewards you receive may be subject to income tax when received, and CGT when sold. |
Remember that the exact rules for transactions on Scion Finance will depend on your tax jurisdiction. To learn more, check out our list of country-specific tax guides.
Does Scion Finance report to the IRS?
Scion Finance is not required to report user activity to the IRS, however, that does not mean your transactions can't be traced.
Blockchains are public ledgers, which makes it easy to track a wallet's activity. The IRS uses sophisticated data collection and analysis to match your real-world identity with your on-chain activity.
Automate your record keeping with Summ
How to calculate Scion Finance taxes with Summ
1. Import your data
First, you will need to import your Scion Finance transaction data to Summ. Here's how:
Sync via API
This method uses a secure API feed to transfer your transaction data from Scion Finance to Summ. Using an API ensures that your data will be updated over time.
- Sign in to Summ or create an account. Navigate to the Accounts tab and click + Add accounts.
- Select Scion Finance from the list of integrations. Click on Sync via API.
- Enter your Ethereum wallet address. Add an optional nickname, and click Add Wallet.
- Summ automatically imports your Scion Finance transaction history from the blockchain. This may take a few seconds to a few minutes depending on the number of transactions. You'll see a confirmation when all data is imported.
2. Generate your tax report
Once your Scion Finance data is imported to Summ, you can calculate your taxes with a few clicks.
- Import accounts. Add any other exchange accounts, wallets or transaction data to Summ. You will need to upload your entire crypto transaction history for an accurate report. This includes all wallets, blockchains and exchange accounts.
- Review transactions. While Summ does the hard work for you, it may flag some missing data or errors, which you will need to review to ensure accuracy.
- Get your tax report. Generate a comprehensive tax report ready for your accountant or local tax authority.
If you're new to Summ, try our Getting Started Guide for an overview of how the platform works. If you need assistance at any stage, click the chat icon in the bottom right corner to begin a live chat with our expert customer service team.
Automate your record keeping with Summ
How to file your Scion Finance tax report
Here's how to file your crypto tax report with your local tax authority:
1. Review your tax report
After importing, you can generate a tax report for Scion Finance and any other accounts you linked. This report will detail your net capital gains, losses, and income from crypto for your chosen financial year.
Review it to make sure everything looks correct. If something looks off, return to the Review tab to ensure all transactions are categorized correctly; check the Accounts tab to ensure all your accounts and their transactions have been added.
2. Download and complete the necessary tax forms
Summ can produce specific forms or summaries needed for filing. Simply check the options in the Downloads section of the tax report and choose the one you need.
For example, if you live in the US, it can produce a report ready to upload to TurboTax, as well as forms like Form 8949 and Schedule D that are pre-filled and contain the relevant information for crypto.
Summ's reports are designed to be tax office compliant and make this straightforward.
3. File before the deadline
Make sure you file your taxes before the deadline in your country. Properly reporting your Scion Finance crypto activity will keep you compliant and help you avoid any penalties.
Get your Scion Finance tax report today
Frequently Asked Questions about Scion Finance taxes
We may be slightly biased, but we think Summ is the best tax software for Scion Finance. Summ analyses all of your Scion Finance transactions to calculate capital gains, income and expenses. You can add as many wallets and exchanges as you like, with all previous tax years available on a single plan.
DeFi protocols like Scion Finance are unlikely to share individual user data with authorities, unless required by law. However, even if you have used non-KYC exchanges and DeFi protocols for trading, blockchain data is inherently public. Government agencies are actively investing in blockchain analytics to identify individual users.
No. DeFi apps and DEXs like Scion Finance do not issue tax forms. Instead, you can use Summ to analyse your transactions and generate a crypto tax report.
Yes. If you receive tokens as a reward, those tokens are typically treated as income. They are taxed based on the fair market value at the time you received them. If you later sell those tokens, any change in value is subject to capital gains tax.
Disclaimer: This guide is for general information only and is not tax advice. Cryptocurrency tax laws vary by region. Please consult a tax professional for advice tailored to your circumstances.