{"id":17146,"date":"2022-01-24T21:46:35","date_gmt":"2022-01-24T20:46:35","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=17146"},"modified":"2022-01-24T21:54:42","modified_gmt":"2022-01-24T20:54:42","slug":"coinbase-launches-free-tax-centre-for-its-users","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/coinbase-launches-free-tax-centre-for-its-users\/","title":{"rendered":"Coinbase launches free tax centre for its users"},"content":{"rendered":"\n
“We're simplifying the process by showing each customer a personalized summary of their taxable activity on Coinbase<\/a>, broken out over time by realized gains\/losses and miscellaneous income,” says Coinbase.<\/h5>\n\n\n\n
\"Coinbase<\/figure><\/div>\n\n\n\n

Crypto investors\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> are already reeling from a rocky start to 2022, and now they must figure out how to calculate the tax they owe by April 18th, the IRS filing date.<\/p>\n\n\n\n

Owners of Coinbase will have it a little easier this year than in previous years, thanks to a new “tax centre” the firm has developed, which will consolidate all of their taxable activity, both short and long term profits and losses, in one spot.<\/p>\n\n\n\n

The new service is crucial since cryptocurrency owners previously had to manually determine how much they made and what tax rate <\/a>applied to their profits. (The government taxes crypto at different rates based on whether you owned it for a year or longer before selling it, much like other assets.)<\/p>\n\n\n\n

“We're making it easier by providing each user with a personalized summary of their taxable activities on Coinbase, broken down by realized gains\/losses and miscellaneous income over time. Customers can use these funds to prepare and submit their taxes with their own accountants or with tax preparation software such as TurboTax “In a blog post unveiling the tax centre, the business stated.<\/p><\/blockquote>\n\n\n\n

The company also provided a screenshot of the new tax centre product, which appears to be as follows:<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Coinbase also stated that consumers who utilize its Pro product or have done transactions using an external wallet<\/a> can get free crypto tax reports from CoinTracker, which is a Coinbase partner. All of this comes as the US government considers crypto taxes as a crucial new income stream to fund a new trillion-dollar infrastructure bill and other responsibilities.<\/p>\n\n\n\n

Previously, the government's primary focus was on locating crypto whales who were attempting to avoid paying taxes. However, in the previous two years, the IRS has attempted to cast a far wider net, including asking every American if they possess cryptocurrency using the usual 1040 form.<\/p>\n\n\n\n

As a result of the government's increased scrutiny<\/a>, a part of the crypto industry is developing tax and compliance solutions similar to those used in other investment sectors.<\/p>\n\n\n\n

While Coinbase's new tax center may make tax filing easier for many of its users, the business will not issue a 1099\u2014the document used by banks and brokerages to inform customers of how much money they made from dividends and investments.<\/p>\n\n\n\n

A Coinbase spokeswoman told Decrypt that the business is not required by law to provide 1099s, but that it will do so for users who earn a lot of money through fees and rewards.<\/p>\n\n\n\n

“We do not issue 1099s for the sale of crypto assets, as it is not required by the IRS. Coinbase will provide 1099-MISC IRS<\/a> forms to customers who earned more than $600 in fee income and rewards for the 2021 tax year,” said the spokesperson.<\/p>\n","protected":false},"excerpt":{"rendered":"

“We’re simplifying the process by showing each customer a personalized summary of their taxable activity on Coinbase, broken out over time by realized gains\/losses and miscellaneous income,” says Coinbase. Crypto investors are already reeling from a rocky start to 2022, and now they must figure out how to calculate the tax they owe by April […]<\/p>\n","protected":false},"author":12,"featured_media":8762,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32],"tags":[5501,6797,6454,6796],"class_list":["post-17146","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-exchange-news","tag-coinbase-2","tag-irs-2","tag-tax-2","tag-tax-centre"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/08\/Coinbase-tragedy-Bitstamp-and-Ledger-execs-talk-about-customer-service-and-exchanges.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/17146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=17146"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/17146\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/8762"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=17146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=17146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=17146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}