Bought or sold crypto on another exchange.Trading crypto for an NFT is considered a disposal event, and you’ll be required to incur capital gains or losses depending on how the price of your cryptocurrency has changed since you originally received it.Ĭoinbase states that their tax calculators won't be accurate if you: In 2021, Coinbase announced that it was releasing a marketplace where users could buy, sell, and mint NFTs. If you’ve earned more than $600 in staking/interest rewards, Coinbase will send a 1099-MISC form to you and the IRS (more on this later). It’s important to remember that staking rewards are considered personal income and will be taxed accordingly. Interest and staking rewards taxesĬurrently, Coinbase offers staking rewards for select coins. For more information, check out our guide to reporting your crypto taxes. Once you have your calculations, you can fill out the necessary tax forms required by your country. To do your cryptocurrency taxes, you need to calculate your gains, losses, and income from your cryptocurrency investments in your home fiat currency (for example, US Dollars). Meanwhile, earning cryptocurrency through staking, mining, or interest rewards should be reported as personal income and will be taxed accordingly.įor a complete and in-depth overview, please refer to our Ultimate Guide to Cryptocurrency Taxes. You’ll incur capital gains or losses if you sell your cryptocurrency, trade it for other cryptocurrencies, or use it to buy goods and services. You will be required to report taxable events on your tax return. Just like these other forms of property, cryptocurrencies are subject to both capital gains and income taxes. Other forms of property that you may be familiar with include stocks, bonds, and real-estate. How is cryptocurrency taxed?Ĭryptocurrencies like Bitcoin are treated as property by the IRS and many other governments around the world. Interested in getting started? Create a CoinLedger account today. take them to your tax professional, or import them into your preferred tax filing software like TurboTax or TaxAct. You can download your Transaction History CSV directly from Coinbase and import it into CoinLedger.īoth methods will enable you to import your transaction history and generate your necessary crypto tax forms in minutes. Upload your Coinbase Transaction History CSV file to CoinLedger.This allows your transactions to be imported with the click of a button. Automatically sync your Coinbase account with CoinLedger via read-only API.There are a couple different ways to connect your account and import your data: Learn more about how CoinLedger works here. You can test out the software and generate a preview of your gains and losses completely for free by creating an account. How Does Cryptocurrency Tax Software Help?īy integrating with all of your cryptocurrency platforms and consolidating your crypto data, CoinLedger is able to track your profits, losses, and income and generate accurate tax reports in a matter of minutes. If you use additional cryptocurrency wallets, exchanges, DeFi protocols, or other platforms outside of Coinbase, Coinbase can't provide complete gains, losses, and income tax information. The trouble with Coinbase's reporting is that it only extends as far as the Coinbase platform. Perhaps you also trade on Coinbase or earn interest from BlockFi. Many cryptocurrency investors use additional exchanges, wallets, and platforms outside of Coinbase. Why Can't Coinbase Generate My Tax Forms? If you are in the United States, you can learn which forms you need to fill out with our blog post: How to Report Cryptocurrency On Your Taxes. To do your cryptocurrency taxes, you need to calculate your gains, losses, and income from your cryptocurrency investments in your home fiat currency (e.g. Just like these other forms of property, cryptocurrencies are subject to capital gains and losses rules, and you need to report your gains, losses, and income generated from your crypto investments on your taxes.įor a complete and in-depth overview, please refer to our Complete Guide to Cryptocurrency Taxes. Cryptocurrencies like bitcoin are treated as property by many governments around the world-including the U.S.
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