If I transfer BTC from a hardware wallet to a decentralized exchange, which wraps my BTC (xbtc) is that a tax event?

[SabrinaD2]

Transferring Bitcoin (BTC) from a hardware wallet to a decentralized exchange and wrapping it into Wrapped Bitcoin (xBTC) can be considered a taxable event. 

Here are some key points to consider:

1. Taxable Event: The conversion of BTC to xBTC may be treated as a taxable event because it involves exchanging one type of cryptocurrency for another.
2. Capital Gains: If the value of BTC has increased since you acquired it, you may owe capital gains tax on the difference between the purchase price and the value at the time of conversion.

For more detailed information, you can check out these links:

1. IRS Cryptocurrency Tax Guide
2. TurboTax Blog on Cryptocurrency Taxes