Coinbase, Exchanges

Does Coinbase Report Basis to IRS?

Coinbase, one of the most popular cryptocurrency exchanges, does in fact report basis information to the IRS. This is important because it allows the IRS to track and tax cryptocurrency gains and losses.

Coinbase reports basis information to the IRS using Form 8949. This form is used to report capital gains and losses from the sale or exchange of capital assets.

On Form 8949, Coinbase reports the date of the transaction, the amount of the gain or loss, and other relevant information.

NOTE: WARNING: Coinbase does not report basis to the IRS. You are solely responsible for reporting your basis to the IRS, and failure to do so can result in significant penalties. Coinbase is not responsible for any taxes you may owe on your cryptocurrency transactions and will not provide any tax advice.

The IRS requires Coinbase to provide this information because it views cryptocurrencies as property, not currency. As such, any gains or losses from the sale or exchange of cryptocurrencies are subject to capital gains tax.

If you’re a Coinbase user, you don’t need to do anything special in order to have your basis information reported to the IRS. Coinbase will automatically provide this information when you file your taxes.

However, it’s important to keep in mind that you are responsible for reporting your cryptocurrency gains and losses on your taxes. This means that you need to keep track of your basis information yourself.

Coinbase can help you by providing Form 8949, but it’s up to you to make sure that all of your information is accurate.

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