Coinbase Launches Cryptocurrency Trading Tax Zakjapanner – Bitcoin News
Having recently had to report overheen 13,000 of its clients to the US Internal Revenue Service (IRS), making it lighter to treat tax reporting is a voorwaarde for Coinbase. The company has launched a tax zakjapanner, but it will not be of much use for many of its clients including those who transacted with GDAX, stored cryptocurrency on a hardware wallet, or invested ter an ICO.
Lighter Tax Reporting
San Francisco-based cryptocurrency exchange Coinbase has announced updated tax implements, now available to make reporting lighter for its traders. The services are not designed for automatic reporting but rather spil a method to help clients and their auténtico tax professionals by simplifying the work.
Traders can get a finish view of all digital asset transactions by generat ing a single report with all buys, sells, sends, and receives of all currencies associated with their Coinbase account. This report provides a cost fundament for all purchases and proceeds for all sales, including exchange fees. This is necessary to determine gains or losses, calculated by subtracting the cost voet from the proceeds for each individual trade. Lacking a clear standard guidance from the IRS tax professionals can be creative, but two approaches are common: Very first ter very first out (FIFO) and Specific Identification (SpecID).
The company reminds clients that “In order to create a accomplish view of your digital asset investments, you will need to download similar reports from all other exchanges you have used.” But if you toevluchthaven’t used any other exchanges, Coinbase has an toegevoegd device just for you.
Coinbase-Only Crypto Tax Rekenmachine
For cryptocurrency traders who have only bought or sold on Coinbase, the excahnge also now offers a fresh implement that automatically calculates gains or losses based on a FIFO accounting method. The company says that this contraption provides a preliminary build up/loss calculation to assist its customers, but should not be used spil official tax documentation without validating the results with your tax professional.
The company warns that you can not use this implement if you have: Bought or sold digital assets on another exchange, Sent or received digital assets from a non-Coinbase wallet, Sent or received digital assets from another exchange (including GDAX), Stored digital assets on an outer storage device (i.e., Trezor, Ledger, etc.), Participated te an ICO, Previously used a method other than FIFO to determine your gains/losses on digital asset investments.
How do you calculate your bitcoin trading taxes? Share your thoughts te the comments section below!
Photos courtesy of Shutterstock, Coinbase.