As bitcoin and a slew of different cryptocurrencies proceed to slip Monday, Coinbase unveiled a brand new suite of sources designed to offer tax help to prospects. Coinbase’s tax middle will permit US customers to see all of their taxable exercise regarding cryptocurrency in a single place on the platform. The corporate may also ship 1099-MISC kinds to customers who earned not less than $600 from staking rewards, curiosity, forks and airdrops in 2021.
As a part of its new tax assist rollout, Coinbase beforehand partnered with CoinTracker, a crypto tax software program supplier. If Coinbase customers ship and obtain from Coinbase Professional or exterior cryptocurrency wallets, they’ll obtain a report from CoinTracker on as much as 3,000 transactions. Coinbase can also be providing prospects a $20 low cost for Intuit’s TurboTax tax submitting software program.
People who purchased and held crypto property – on Coinbase’s trade or elsewhere – in 2021 is not going to be required to report something about it on their return this yr. The IRS, which is reported to be extra intently scrutinizing cryptocurrency buying and selling, does require studies of capital good points or losses, nonetheless, which happens when an asset is bought or traded. (Learn extra about tips on how to decide should you owe taxes in your cryptocurrency transactions.)
Coinbase prospects will be capable to take a look at all of their taxable exercise to see in the event that they owe taxes and the way a lot they should pay. Coinbase offers a abstract of your exercise – together with which property you got, bought, despatched or obtained – categorized by date, realized acquire/loss and their tax impression.
