Crypto startup Coinbase is stepping up its game. At least, in terms of helping its user base keep up with their tax obligations – it has launched its very own cryptocurrency tax calculator.
What’s Going On?
In January, the exchange and wallet service provider reminded its users that they are eligible for United States capital gains. Today, March 13, Coinbase published a blog post, stating that it has rolled out a cryptocurrency tax calculator. Specifically, Coinbase launched a gain/loss calculation tool. Why? Because the startup wants to help its users stay up to date with their U.S. tax requirements.
What Do We Know About the Cryptocurrency Tax Calculator?
According to the firm, the cryptocurrency tax calculator provides a “preliminary gain/loss calculation” to help its customers. Explaining further, Coinbase stated the cryptocurrency tax calculator can be used to create a report which highlights both their capital gains and losses on its platform. How? By using a FIFO accounting method. However, Coinbase did caution its user base, stating that the calculating tool does come with a couple of conditions.
What are these conditions? Well, according to the firm, the cryptocurrency tax calculator is mainly targeted at users who have previously bought and sold on Coinbase. Further, the crypto startup does not recommend the tax calculator for individuals who have purchased digital assets on another platform. Additionally, Coinbase stated that the cryptocurrency tax calculator “should not be used as official tax documentation without validating the results with your tax professional.”
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This is not the first time Coinbase has made headlines this month. In fact, on March 6, Coinbase announced that it will be rolling out a weighted index fund for cryptocurrencies. Even though investors were forecasting a different announcement – people thought the firm was going to announce the addition of Ripple to its exchange – the announcement of the index is still pretty monumental. Why? Because the index will reportedly provide investors with a simple way to get exposure to the cryptocurrency assets offered on the startup’s exchange.
What do you think of the cryptocurrency tax calculator?
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