When it comes to taxes, there is a lot of confusion surrounding cryptocurrency. So, do you have to pay taxes on Coinbase Pro?
The answer is…maybe. It depends on a few factors.
For starters, it’s important to understand that Coinbase Pro is a cryptocurrency exchange. That means it’s subject to the same lAWS and regulations as other exchanges.
That said, the IRS has not yet released specific guidance on how to treat cryptocurrencies. So, for now, it’s up to each individual to determine if they owe taxes on their Coinbase Pro transactions.
Here are a few things to consider:
-Are you buying or selling cryptocurrencies on Coinbase Pro?
-If you’re selling, what was your cost basis? In other words, how much did you pay for the crypto you’re selling?
NOTE: WARNING: Tax laws are complex and constantly changing. Before engaging in any taxable transaction relating to Coinbase Pro, please consult a qualified tax advisor to ensure that you fully understand the tax implications of your activities. Failure to properly report taxable transactions can result in heavy fines and penalties.
-Are you making a profit or loss on your transaction?
If you’re buying crypto on Coinbase Pro, there’s no immediate tax implications. However, if you later sell that crypto (for example, when it goes up in value), you may owe capital gains taxes.
Similarly, if you’re selling crypto on Coinbase Pro, you may owe capital gains taxes on any profit you make. However, if you have a loss, you may be able to deduct it from your other income (up to $3,000).
Again, it’s important to note that the IRS has not yet released specific guidance on how to treat cryptocurrencies.
If you have any questions or concerns, we recommend talking to a tax professional.
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