If you’re like many Americans, you use Coinbase to buy and sell cryptocurrencies. And if you’re like many Americans, you’re probably wondering if you have to pay taxes on your Coinbase transactions.
The good news is that you probably don’t have to pay taxes on your Coinbase transactions. The bad news is that it’s not entirely clear why.
Here’s what we do know: the IRS has said that cryptocurrencies are property, not currency. That means that any gains or losses on your Coinbase transactions are subject to capital gains taxes.
However, it’s not entirely clear how the IRS treats Coinbase transactions. It’s possible that the IRS views Coinbase as a brokerage service and treats your transactions as stock trades.
If that’s the case, then your Coinbase transactions would be subject to special rules and regulations, including the possibility of paying lower taxes.
Of course, until the IRS provides more clarity on the matter, it’s impossible to say for sure how they will treat Coinbase transactions. So if you’re worried about paying taxes on your Coinbase transactions, you may want to consult with a tax professional.