As you probably know by now, US government plans to impose taxes on cryptocurrency assets. So, Coinbase launched a new tool to help customers to keep up with legislation – a gain/loss calculator.
In a recent blog post, the company explained the features of their new calculator. It can be used to generate a report with a summary of user's capital gains and losses on the platform, using the so-called first-in-first-out accounting method.
There are some issues with the tool, however. First of all, it's aimed at people who purchased cryptocurrency solely on the Coinbase platform. And even the aforementioned blog post says, that it's not recommended for users who participated in ICOs and/or purchased crypto elsewhere. Also, this preliminary report shouldn't be used as an official tax document without consulting your tax professional, as mentioned in the blog.
The publication of the calculator is a next step in Coinbase's effort to keep on the right side of the law. They even posted a consistent banner that users are subjected to US capital gains taxation to remind customers of the issue.
The government effort at taxation has long been a hot topic among US digital assets holders. The main issue is that digital assets are taxable as a property, rather than as a currency, as declared by U.S. Internal Revenue Service in 2014. This raised a lot of fuss among the community, but the point remains unchanged.
Coinbase is securing its bases with the new calculator, as we can see. Not only for users, but for itself too, it seems, because IRS has already filed a lawsuit against the company to release the data on US customers to fish out possible tax evaders. The lawsuit has been passed in November 2017, and now Coinbase has to release the information on more than 13,000 users, who utilized the platform between 2013 and 2015.