Cryptocurrency exchange giant Coinbase has announced on its official blog that they have integrated new resources to make crypto taxation easier for its users in the United States.
According to the press release, which was published on 24th January 2019, the company has noticed the confusion regarding the subject of crypto taxation in the US and has implemented some new features to offer better services to its user base in the USA.
The cryptocurrency exchange has added two important resources on its platform to aid users in understanding if they owe taxes on their holdings or not. 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, which serves as an information centre on taxes for the concerned users.
Additionally, the exchange has also supplemented the new resources with the availability of the popular tax software, Turbotax on its website. The software integration will aid users to access the new “crypto tax section” which will help them upload transactions and accounts for gains and losses.
On top of this, the exchange has added the services offered by Cointracker, which will display a simplified transaction history of a user in 2018, regardless of the exchange or wallet used for the transaction, enabling accurate taxation. Cointracker has also partnered with TurboTax to make the upload of a comprehensive view of crypto activity easy.
However, official information regarding taxation of crypto assets in the US has been vague of late, with a lack of clarity on the legal definition of the asset. 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.
This has resulted in some serious confusions regarding how the taxes should be filed on earnings made through cryptocurrency transaction and holdings.