Question about side chains, layer 2, and their tax implications

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Question about side chains, layer 2, and their tax implications

I believe moving L1 tokens to a side chain like polygon or xDai would technically be a taxable event in the US because bridging involves trading one version of the token for another chain's version of the token.

Would this technically be true for transferring to L2s like arbitrum, loopring, optimism, etc. also?

submitted by /u/amphibiousParakeet
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