Filing taxes can be a huge pain int he behind, especially when your dabbling with cryptocurrencies, where almost nobody has a clue as to how you’re supposed even file those. Luckily, Coinbase has decided to integrate TurboTax, the tax-filing software offered by software company Intuit Consumer Tax Group.
TurboTax Premier has been reported to allow Coinbase and Coinbase Pro users to upload their transactions, gains and losses from 2018 and the software will proceed to help customers determine how to file their taxes from the previous year. If you in need of additional help, you be able to ask for certified public accountants or enrolled agents from Intuit.
Although, a press release made by Intuit does warn users,
“One thing to keep in mind, not every cryptocurrency transaction constitutes a taxable event, which is why we have tons of guidance to assist you in understanding and selecting which transactions are taxable while you are in TurboTax Premier.”
The list of transactions that are not taxable includes customers who purchased cryptocurrencies and have yet to sell, gift or purchase cryptocurrencies with Self-Directed Individual Retirement Account (IRA) or Solo 401k, a retirement plan for Americans that designed specifically for employers with no full-time employees other than business owners and their spouse.
For those who do have to pay taxes on their cryptocurrencies are the customer who converted their coins into fiat, sold, spent it to purchase goods or services, or received free coins through either an airdrop or fork.
Coinbase will also be launching a tax resource center and publish a guide called “Crypto and Bitcoin Taxes in the US” for 2018 in order to help their customers better understand any tax obligations they have to deal with. Although, they pointed out that they are not authorized to give tax advice and urge their customer base to seek out help with tax professionals in specific situations.