Coinbase, a popular platform used to buy and sell Cryptocurrency, has added a new dashboard that makes it easier for users to track their profits and losses. This dash is intended to help users when it comes time to report their crypto-assets to IRS, even though the coinbase records it does not report gain / loss information to the agency.
The average person treats cryptocurrency in the same way as they, but the IRS looks different. According to the tax agency, Bitcoin and other digital Crypto are considered as property, which means users are expected to report their profits and losses when submitting their annual tax. However, information tracking can be difficult, and historically exchanges do not help with this problem.
Coinbase aims to change it with a newly introduced tax dashboard. Although this information may not be fully what you need when reporting your Crypto assets to the IRS, it provides snapshots of transactions and assessment changes that have occurred through a coinbase account, and it is a strong start.
Coinbase users can access the tax dashboard from the website platform or application. On the website, users can click on their profile images in the upper right corner of the screen and select “Tax” from the drop-down menu. In the application, users must tap profiles & settings to open the menu with the tax dashboard link.
Dashboard provides a snapshot display on transactions made using the coinbase account during the previous year, including crypto assets that were converted from one digital coin to another, the number of Crypto sold, the number of Crypto spent, and “Advanced” trade transactions.
Based on transactions, the dashboard also provides an estimated loss or gain, even though coinbases are careful to record these numbers “calculated based on assumptions.” Users are also presented with the information of “Miscellaneous” income, which includes transactions based on things such as gifts and flowers.
Some users who receive income in a gift or from risking will be able to download the Form 1099-eg. This form of taxation is issued for users and IRS if the account gets at least $ 600 in Cryptocurrency during the previous year.
Crypto fans who have done several transactions, including getting Crypto through an external wallet, it is recommended to check the cointracker, which will provide tax reports with up to 3,000 Crypto transactions for free.
