Coinbase Users Able To Upload Transactions And Calculate Tax On TurboTax Platform
It was announced Tuesday that Coinbase and Coinbase Pro clients would be able to upload their 2018 Coinbase transactions, including gains and losses, directly onto TurboTax Premier. According to Coinbase, clients will be able to upload up to 100 transactions at once.
Coinbase also stated that its users could upload their transactions using either its desktop platform or the Android and iOS apps.
Once the transactions have been uploaded to TurboTax Premier, the software then determines whether and how they should be reported on customers’ tax returns.
Coinbase clients who sold cryptocurrencies, paid for goods or services with cryptocurrencies, or received free coins through a fork or airdrop will need to report that as income.
According to Intuit, “not every cryptocurrency transaction constitutes a taxable event, which is why we have tons of guidance to assist you in understanding and selecting which transactions are taxable while you are in TurboTax Premier.”
Non-taxable transactions include buying then holding cryptocurrencies, gifting cryptocurrencies (up to $15,000) or purchasing cryptocurrencies with a Self-Directed IRA or Solo 401(k).
Coinbase also announced a partnership with CoinTracker, an online service that tracks cryptocurrency price movements to calculate users’ profits and losses.
In a separate statement, CoinTracker said its users will be able to aggregate their tax-related transaction data from any wallets or exchanges they may use.
“We can’t have an open financial system if it is too difficult to use, or restricted to certain groups,” said CoinTracker co-founder Chandan Lodha. “Therefore, we have a simple mission: make cryptocurrency easier to use. We are starting by tackling cryptocurrency taxes.”
CoinTracker currently supports more than 2,500 cryptocurrencies and offers automated integration with 20 cryptocurrency exchanges. The platform tracks more than $200 million in crypto assets.
In addition to the TurboTax and CoinTracker partnerships, Coinbase has also said it was planning a tax resource center as well as creating a guide to help its customers determine what tax obligations they may have for 2018.
Coinbase isn’t authorized to solicit tax advice. It recommends that customers reach out to a tax professional for questions regarding their specific situations.
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