Coinbase has integrated new resources for crypto taxes for its American based users. The company itself annouced this through a post on its official blog which is dated 24th January, 2019.
New Crypto Tax Resources, TurboTax and Cointracker Integration
According to the press release, the confusion of it customers and American crypto users at large on the subject of crypto taxation has made the exchange to add some new features to offer better services to its community of users.
To create clarity for the subject of owing tax or not; the exchange has added two important resources to its platform to aid users. The first is the crypto and Bitcoin tax in the U.S. 2018 edition – a general education guide on crypto and taxes for the past year, a visit to the page helps to know more about potential tax obligations. The second is the tax resource centre that serves as a new and improved Coinbase support offering for tax season. This provides users with necessary information on tax.
In addition to the resources made available by the exchange, it has also added the popular tax software, Turbotax. The integrated software has created a new crypto tax section which allows users to upload transactions and accounts for gains and losses.
Also, the exchange has added Cointracker. This new addition is to give ease in summarising all forms of transactions made in 2018 regardless of the exchange or wallet used. This enables proper taxation. Cointracker has also partnered with TurboTax to make the upload of a comprehensive view of crypto activity easy.
Lack Of Crypto Definition Clarity
Crypto taxation in the United States has been hampered by the lack of clarity on the appropriate definition. For example, the Securities and Exchange Commission (SEC) considers cryptocurrency as security, the Commodity Futures Trading Commission (CFTC) consider it as a commodity, the Financial Crimes Enforcement Network consider it as money, and Internal Revenue Service (IRS) considers it as a property.
Coinbase Expansion and Growth
Coinbase crypto exchange, one of the largest in the world has seen growth and expansion of its reach in recent time. In 2018, the exchange expanded its reach through the addition of more cryptos on its platforms, such as including Ethereum Classic (ETC), Zcash (ZEC), and Basic Attention Token (BAT). Also, there was an addition of OTC, Over The Counter trading desk for institutional investors.
Also, the exchange introduced “Coinbase Earn” in the latter part of 2018. This platform enables users to learn cryptocurrencies as well as earn them.