- Coinbase has announced new products to enable users to pay tax on the crypto gains with ease
- These come as part of a partnership with CoinTracker and TurboTax
In recent months, a lot of progress has been made towards creating adequate tax regulations for cryptocurrencies, especially given that some places in the United States now accept payment of tax in Bitcoin and several European countries are aggressively pursuing the payment of tax on cryptocurrency transactions.
Several crypto firms have realized this and are actively creating avenues to streamline the process of paying taxes, one of which is Coinbase. According to a January 24, 2019 press release, the company has created a way for users to claim their crypto trades for taxes on their site.
The New Features
“We’ve heard confusion from both our customers and the broader crypto community on taxes stemming from crypto transactions. Today, Coinbase is announcing a number of steps we’ve taken to streamline customers’ experience this tax season,” the announcement says.
As part of their efforts, Coinbase has released a document called Crypto and Bitcoin Taxes in the US, 2018 Edition. This resource gives general information about cryptocurrency and taxes based on information available in the last year. There is also an updated Tax Resource Center for Coinbase users who need more personalized tax information.
Coinbase has also partnered with TurboTax to make the uploading of transactions easier and at a discount through the TurboTax Premier product.
With this product, Coinbase users can upload up to 100 transactions to reflect gains and losses. To do this, users will first need to download their transaction history and then will need to upload the document into TurboTax premiere. For now, this service is not available to Coinbase Pro users, who will need to use a different product for compiling transactions from multiple exchanges.
The TurboTax option is available in TurboTax Premier, TurboTax Live Premier, TurboTax Self-Employed, and TurboTax Self-Employed Live.
Some Coinbase users make use of multiple exchanges and multiple wallets for their crypto transactions and to accommodate them, Coinbase has integrated CoinTracker which compiles a single transaction history from multiple wallets and exchanges, saving time and effort on the part of the user.
The exchange also admonished users to seek out professional help for their needs.
“While we’re not a tax advisor and always recommend that customers speak with a tax professional regarding their specific situation,” the blog post said.