When you are referring to exchanging to Monero, is that specifically towards centralized exchanges, or a blanket statement also affecting P2P exchanges such as Retoswap?
Okay, but Monero is designed to cryptographically decorrelate transactions to and from your wallet through ring confidential transactions, ring signatures, and stealth addresses.
Send your exchange BTC to cake wallet BTC. Boom taxes gone because you just “gifted” an imaginary person some bitcoin. Now the taxable event is in their hands not yours. This cake wallet address will be used once more for a swap to Monero then you’ll delete that bitcoin wallet. Keep the amounts low and use a no KYC swap service. Wouldn’t hurt to use your own Monero Node as well.
If I exchange my KYC Bitcoin with a random person, that random person could use the Bitcoin that is tied to my identity for illegal activities that fallback on me