In line with an official ‘web-blog post‘, renowned crypto exchange and crypto wallet service provider ‘Coinbase’ has offered resources for its users within the U.S. to claim cryptocurrency trades on their taxes.
Additionally adding an academic guide on crypto and taxes, [Coinbase] has conjointly integrated with a renowned tax software named ‘TurboTax’. In line with the web-blog post, users of Coinbase.com and Coinbase Pro would be able to import transactions into a new, crypto-specific section of TurboTax Premier automatically.
Coinbase announced that it offered the new resources so as to make the platform easier to use once hearing confusion from the community related to crypto transactions on their taxes.
The legal definition of cryptocurrencies within the United States — and by extension the means by that holders are duty-bound to claim it on their taxes — remains unclear as a slew of regulative agencies each visualising cryptocurrencies differently. Whereas the SEC [Securities and Exchange Commission] considers cryptocurrencies to be securities, the CFTC [Commodity Futures Trading Commission] considers them as commodities.
The Financial Crimes Enforcement Network classifies cryptocurrencies as money, whereas within the view of the Internal Revenue Service — the agency responsible for the collection of taxes and distributing refunds — digital assets like Bitcoin [BTC] are property.
Coinbase ‘expanded‘ its offerings considerably last year, adding support for many new tokens as well as Ethereum Classic [ETC], Zcash [ZEC], and Basic Attention Token [BAT]. In Nov. 2018, the exchange added an OTC [over the counter] trading desk for institutional investors.
Explaining further, the head of sales at Coinbase exchange named ‘Christine Sandler’, added:
“We launched our over-the-counter business as a complement to our exchange business as we found several institutions were using the over-the-counter as an on-ramp for crypto commerce.”
Coinbase has antecedently launched academic programs to show users regarding the fundamentals of cryptocurrencies. Even earlier in Dec. 2018, the exchange introduced ‘Coinbase Earn’, a platform wherein individuals could study cryptocurrencies as they earn them. The concept behind the initiative was supposedly to educate users regarding an asset “while obtaining a bit of the asset to try out.”