It's a stable coin it doesn't adjust.
USDC is a stablecoin, meaning it’s pegged to the U.S. dollar and designed to maintain a stable value. So, while its value doesn’t fluctuate like other cryptocurrencies, the tax implications still apply when you use it for transactions. When you receive USDC as payment, it’s treated as income. If you hold it and later convert it to USD, you’ll need to report any gains or losses, even if minimal, based on the conversion rate at the time of the transaction.
Makes taxes feel even more tedious, right? But better safe than sorry with the IRS.
I just want to make sure it isn’t greater than a standard transaction
It’s comparable to a standard transaction. The main difference is the record-keeping and the need to track any conversions or sales, even if the value doesn’t fluctuate much. It’s just about keeping things clear and above board.
