Coinbase, the crypto currency startup, has rolled out a fresh gain/loss calculating device as fraction of its initiative to assist its consumers keep up the pace with tax needs of the U.S. In a blog post issued this week, the company clarified that the calculator can be employed to create a report that summarizes their capital losses (or gains) on its website, employing a FIFO (first in first out) accounting technique.
The calculator comes with a small number of caveats. It is mainly designed for users who have sold and bought exclusively on Coinbase. It is not suggested for those who have brought digital assets somewhere else or taken part in an early coin offering, according to the blog.
“This tool offers an introductory gain/loss calculation to help our users, but must not be employed as official tax records without authenticating the outcomes with your tax expert,” the startup claimed to the users via its blog post. Its roll out follows a previous measure on the tax front by Coinbase, when, in January 2018, the company reminded its consumers that they are accountable for the U.S. capital profits.
The problem of crypto currencies and taxation has always been somewhat of a controversial topic, ever since the IRS (Internal Revenue Service) of the U.S. declared in 2014 that it will treat such properties as a taxable type of asset instead of a currency.
Worries over the uncertainty of the IRS rule have elevated the number of complaints from experts. Coinbase in its new blog claimed that: “we recognize taxes can be complicated for digital currency.” The issue also carries an extra amount of weight particularly for Coinbase, which was the target of a court case by the IRS as it wanted data on US-located consumers in an attempt to find out possible tax avoiders.