The widely used cryptocurrency platform, Coinbase, has recently provided information about over 13,000 customers. To facilitate the tax filing process, they now offer support to users through a new tax calculator. Although it doesn’t automatically submit details for users, it aims to ease the workload for clients and their financial consultants.
Essentially, this tool produces a consolidated report, summarizing all purchases, sales, transfers, and receipts of cryptocurrencies linked to any designated Coinbase account.
While some might find Coinbase’s tax calculator beneficial, it is not universally adaptable. For instance, it may not assist individuals who have engaged in trades through GDAX or those managing cryptocurrencies via physical storage devices.
Those who venture into various platforms must independently sort out these activities. Coinbase, on their end, suggests that users should “retrieve comparable reports from other platforms” utilized, to “compile a holistic perspective on digital asset dealings.” Despite this, the Coinbase tax solution is anticipated to alleviate a considerable amount of stress and time for digital currency traders and their trusted advisors in the forthcoming days.
Engaging with cryptocurrencies and Initial Coin Offerings (“ICOs”) involves substantial risk and speculation. This text should not be interpreted as an endorsement from the publisher or the author to engage in cryptocurrencies or ICOs. Individual scenarios vary, and it is prudent to consult a certified advisor for all financial choices. No guarantees are offered regarding the precision or currency of the information presented here. At the time of this article, the writer holds bitcoin and ripple.