Changing a concentrated liquidity position's price bounds, often by removing liquidity and creating a new position with a different asset mix.
A rebalance is a close and a reopen. Under the common position, closing the position is a disposal for the tokens returned, and reopening is a new acquisition, so each rebalance realizes the gain or loss on the old position and resets basis and holding period.
Under the common position, yes. The new position is a new asset acquired on the rebalance date.
Source: No IRS guidance as of September 2026; IRS Notice 2014-21 (property treatment)
Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.
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