Coinbase has partnered with CoinTracker, a portfolio tracking, and tax calculating platform, to make the process of declaring their crypto taxes. US citizens have just three months to declare their crypto losses and gains to the IRS.
Coinbase partners with CoinTracker
CoinTracker will now be available to Coinbase customers to prepare their tax returns for crypto trades. Equally following the integration, Coinbase Ventures has also invested in CoinTracker. CoinTraker is a committed platform that is leading the way in the cryptocurrency tax compliance sector, which wants to build on its over 125,000 users.
This year, the IRS will ask US citizens about crypto transactions on the first page of Form 1040. As a result, users and tax professionals may need the help of cryptocurrency tax software in calculating loss/gain from the crypto transaction. Thanks to this partnership, Coinbase customers will now use CoinTracker when calculating their losses/gains. The process is simple and CoinTracker will calculate and fill out some forms such as Schedule D and Form 8949 declaring capital losses, gains, as well as assets on income returns. Most importantly individual accountants can use it or as a software program for filing tax such as TurboTax.
CoinTracker integrated to Coinbase tax page
Chandan Lodha, the co-founder of CoinTracker indicated that the partnership will permit “one-click integration” from the taxes page on Coinbase. Therefore this will allow users to easily calculate cryptocurrency losses and gains on the platform.
In November, IRS indicated that it will take a strong position against Coinbase users failing to file tax reports on crypto. Although some users believe it is hard for the government to track crypto transactions, profits, and sales, omitting/lying about such information is taken as tax fraud in the US and could lead to fines, audit, or incarceration. Coinbase announced last month that it will be issuing 1099-MISC forms as part of the obligation for users to declare crypto income. This will help the exchange to provide information to the IRS for users that received over $600 in payments last year.