Coinbase Adds Cryptocurrency Tax Zakjapanner – Crypto Daily
Coinbase has launched a fresh build up/loss calculating contraption intended to help users keep track of their U.S. tax requirements. The rekenmachine permits users to generate a report demonstrating any hacienda gains or losses made while trading on the world’s most popular Bitcoin exchange verhoging.
Since 2014, when the U.S. Internal Revenue Service (IRS) announced it would treat cryptocurrencies spil a taxable type of property, users have struggled to stay on top of switching tax laws.
Taxes applied to digital currencies can be sophisticated, but the IRS wants a share of cryptocurrency profits. Spil a result, the IRS demanded San Francisco-based Coinbase provide trading information and historical documentation for some of its U.S users, including handing overheen taxpayer IDs, names, addresses, birth dates, and transaction records for users conducting transactions totaling more than $20,000 USD ter the years inbetween 2013 and .
Coinbase alerted its users to the request te a note posted to the platform’s webstek: “On February 23, , Coinbase notified a group of approximately 13,000 customers concerning a summons from the IRS regarding their Coinbase accounts.”
Three weeks prior to the IRS notice, Coinbase issued 1099-k tax forms to users te a subtle reminder to pay taxes on any caudal gains generated from trading cryptocurrencies. Users whose gains exceeded $20,000 for the year, or those with more than 200 receipt transactions on the Coinbase exchange are required to submit tax forms verifying their trading activities.
Ter an effort to provide greater transparency for user activity on its toneel, Coinbase launched the tax zakjapanner. The rekenmachine uses a first-in-first-out (FIFO) accounting method, but only covers trading activities conducted on Coinbase’s toneelpodium. Users who have bought or sold cryptocurrencies using other platforms or those who may have participated te an initial coin suggesting (ICO) will need to find other means of reporting their trading activities.
While the hacienda build up/loss reports generated by Coinbase provide a preliminary result for users, it’s significant to verify any results with a tax professional. Preliminary reports should not be used spil official tax documentation when announcing any profit or loss from trading cryptocurrencies.