Coinbase Launches Tax Calculator For Crypto Traders

Coinbase, the largest American cryptocurrency platform, has launched a new tool for traders that allows you to calculate the approximate profit or loss that appears during trading. The new initiative aims to simplify tax compliance for the site’s clients, according to the company’s blog.

As the message says, the calculator can be used to compile a report on the growth (or loss) of capital on the platform. For calculations, the ‘first-in-first-out’ method is used.

However, representatives of the exchange note that the new tool was created for those users who buy and sell cryptocurrencies exclusively on the Coinbase platform. The calculator is not recommended for traders who purchased digital assets on third-party platforms or through initial coin offerings.

“The calculator allows us to make a preliminary calculation of the profit / loss of our clients, but it is not an official tax instrument. To validate the results, you need to consult with your tax specialist, ”the message says.
Note that this is not the first such move by Coinbase in the field of tax law. So, in January, the company reminded its clients that their activities on the site are subject to capital gains laws, and even posted a corresponding banner on the site.

In addition, 13,000 Coinbase users previously received a notice that the company was forced to transfer their data to the IRS in accordance with a ruling from the federal court for the Northern District of California.

First of all, the decision affected users who carried out transactions totaling over $ 20,000 during the year. However, Coinbase considered this a partial victory, since the IRS initially required data from half a million users, which the company successfully challenged in courts.