Coinbase, a crypto exchange headquartered in San Francisco, California, in its bid to streamline customer’s tax experience, announced adding resources to help US customers claim crypto trades on their taxes, as per a recent blog post published on Thursday, Jan. 24th 2019.
The exchange, apart from adding an educational guide on crypto and taxes, has gone a step further and has integrated with TurboTax, popular tax preparation software package. Further, the blog post also reveals that Coinbase and Coinbase Pro users will now have the ability to automatically import transaction history into TurboTax Premier.
The exchange, in an attempt to offer a sense of clarity to customers on crypto transactions & taxes, has announced these new resources in order to make the platform easier to use, after listening in on community and customer feedback.
The two independent agencies of the United States government, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC), both consider cryptocurrencies differently, while SEC calls them –security, CFTC considers them as a commodity. These overlapping considerations have twisted the legal definition of cryptocurrency in the US, making it unclear to classify cryptocurrencies. Similar views extend in all govt. departments, the Financial Crimes Enforcement Network (FinCEN) classifies crypto as money, while the Internal Revenue Service (IRS) classifies them as property.