American cryptocurrency exchange and wallet service Coinbase has added resources for Clients within the U. S. to assert crypto trades on their taxes, as per an official blog post on January. 24.
In addition to adding an academic guide on crypto and taxes, Coinbase has conjointly integrated with popular tax software TurboTax. As per the blog post, users of Coinbase.com and Coinbase pro will be able to automatically import transactions into a new, crypto-specific section of TurboTax Premier.
Coinbase says that it provided the new resources so as to create the platform easier to use after hearing confusion from the community concerning crypto transactions on their taxes.
The legal definition of cryptocurrency within the U.S. — and by extension the means by which holders are obliged to claim it on their taxes — remains unclear as a slew of regulative agencies each view cryptocurrencies differently. Whereas the Securities and Exchange Commission considers cryptocurrencies to be securities, the commodity Futures trading Commission considers them commodities.
The monetary Crimes enforcement Network classifies crypto as money, whereas within the view of the internal Revenue Service — the agency accountable for collecting taxes and distributing refunds — digital assets like Bitcoin (BTC) are property.
Coinbase expanded its offerings significantly in 2018, adding support for several new tokens together with Ethereum Classic (ETC), Zcash (ZEC), and Basic Attention Token (BAT). In Nov 2018, the exchange added an over-the-counter (OTC) trading desk for institutional investors. Christine Sandler, head of sales at Coinbase said:
“We launched our otc business as a complement to our exchange business as a result of we found lots of establishments were using otc as an on-ramp for crypto trading.”
Coinbase has antecedently launched educational programs to teach users regarding the fundamentals of cryptocurrencies. In Dec 2018, the exchange introduced “Coinbase Earn,” a platform whereby users will study cryptocurrencies as they earn them. The concept behind the initiative was supposedly to teach users regarding an asset “while obtaining a small amount of the asset to try out.”
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