How to Pay Coinbase Taxes

For our friends who use Coinbase as one of their platforms, we’ve compiled a little guide on how to pay taxes for the crypto you’re holding.

How cryptocurrency taxes work  

The IRS treats cryptocurrencies as “property.”
This means gains and losses from selling or trading cryptocurrencies are subject to tax reporting.
If you are trading crypto on Coinbase, you must report your transactions for tax purposes. All data, including profits and losses, are required.
The final amount that you owe is determined by your income and tax rate.
Now, let’s take a look at how to properly report your cryptocurrency transactions to the IRS and the steps required to prepare your tax return.
**Please refer to the Tax Guide for details such as the relationship between the IRS and cryptocurrency, calculation of cryptocurrency gains and losses, and tax rates


Why can't Coinbase calculate my taxes?

Coinbase Investors are responsible for their own tax calculations!
To calculate your taxes, you must first figure out how much you made from trading crypto. You will need your complete transaction history and a record of every sale and purchase you have made.
If you use multiple platforms, this can quickly get tricky. Exchanges, wallets and other platforms can only provide investors with their own individual transaction history. This means you will have multiple transaction histories to juggle simultaneously. 

Consider the following example: you moved a cryptocurrency in your wallet to an exchange and then sold it. To determine the exact cost, you would require transaction history for both your wallet and exchange as they do not share information. If you fail to do so, or fail to do so correctly, this may lead to improper income reporting. Possible results include paying more taxes than you need to, fines, and even criminal charges.
Therefore, it is absolutely critical for crypto traders to accurately collect and calculate transaction details on all platforms that they have used.

 

Why You Need Crypto Tax Software

Think about the time it would take you to organize hundreds or even thousands of transactions on various platforms and then review them for accuracy. Also remember that improper tax filing can lead to heavy penalties from the IRS. Stressed out yet?

The good news is that crypto tax software can make this painful process quick and easy by aggregating hundreds and thousands of transactions into a single platform, then reviewing them for accuracy and calculating the most optimal tax liability. In just a couple of minutes, you can get an accurate tax report that can be downloaded and imported into your tax filing software of choice.

 

OK, So How Do I Calculate My Crypto Taxes?

If you want to see how Cointelli crunches the numbers and how crypto tax reporting works, we’ve got you covered! We’ve written an articles that’ll give you the basics of how this process works!
Learn more about our crypto tax software here.

 

How to Import Your Coinbase Data to Cointelli

The first step toward calculating your overall crypto taxes is to import your data onto our platform. Cointelli supports Coinbase in its calculations, so no worries! You only have to do one of two things to get your Coinbase data uploaded:

Option 1: Log in to your Coinbase account to Cointelli. Once you log in to your Coinbase* account, your transactions are automatically synced.

Option 2: Import your Coinbase transaction data in CSV format! We’ll give you a CSV template to properly format your data before you upload it to our Cointelli platform.

Either way, you’ll be able to get your crypto data from Coinbase onto Cointelli in a snap! All you have to do is let us take care of the number-crunching - sit back and relax!

 

1. How to import your data by logging in to Coinbase

* If you are a Coinbase Pro user, you must add your Coinbase Pro account separately. 

  1. Click Click here to log in to Coinbase.
  2. Log in and enter the two-step verification code.

 

2.How to import your Coinbase transaction history into Cointelli

* If you are a Coinbase Pro user, you must add your Coinbase Pro account separately.

 

Step 1.

Log in to your Coinbase account. (https://www.coinbase.com)

Logging in to Coinbase to import  transactions into crypto tax software

 

Step 2.

In the upper right corner, click Profiles → Reports.

Getting CSV file from Coinbase

 

Step 3.

Click on Generate report next to Transaction history.

Getting CSV file from Coinbase - genetate report

 

Step 4.

The default setting for everything is All. Do not modify this setting. Click Generate report next to CSV report.

Getting CSV file from Coinbase - generate report

 

Step 5.

After a few seconds, click Download.

Getting CSV file from Coinbase - download report

 

Step 6.

Upload the .csv files you downloaded to Coinbase.

(Please import the downloaded files as is, without editing the file name, extension, content, etc, to avoid errors.)

Getting CSV file from Coinbase

Ready to get
your report?

To get started, simply sync your wallets and exchanges.