Exchanges like Coinbase provide transaction history to every customer, but only customers meeting certain mandated thresholds will also receive an . But what can we do with it and how to use it in filing taxes? IRS Form 1099-K Introduction You would have received a 1099-K from Coinbase Pro. All it really says is how much money you had IN from everywhere. It doesn’t display any info on how much you made/lost with each trade. So, what can do you do with this 1099-K? Coinbase’s 1099K form is a kind of consolidated information describing the volume of your trades (Exchanges like Coinbase provide transaction history to every customer, but only customers meeting certain mandated thresholds will also receive an .). IRS Form 1099-K Even though you could have just traded with $10K — it will have all the buys and sells and the final number looks daunting. This won’t be much use for filing your taxes. As mentioned above, this is form sent to traders on Coinbase who have exceeded a threshold. This is a similar situation that happened to one of my friends last January. Following are two options: Have used ONLY Coinbase If you have just traded ONLY on Coinbase, you can use their and download tax form, which can be used to upload on TurboTax Online or provide to your tax preparer/CPA. tax center Traded on other exchanges too (80% of users) If you have traded on Coinbase and other exchanges — then the tax form provided by Coinbase is of no use (see below for exclusions) disclaimer Coinbase’s In this case, you would have to use third party cryptocurrency tax software like (really wish they will be bearish about taxes and reduce the tax liability!) where you can import your transactions from Coinbase and almost every other exchange, review them and calculate your capital gains or losses. BearTax Gain-Loss Summary on BearTax They will provide you with appropriate tax forms like 8949 Capital Gains Form, CSV Export which can be imported on Turbotax Online, Export to TaxAct format for accountants or a generic CSV. _Signup now for the best cryptocurrency tax software that is used by thousands of cryptocurrency taxpayers in the US to calculate and download their tax documents…_bear.tax BearTax - Cryptocurrency Tax Software for Traders & Accounting Firms Their support staff is very responsive. If you got any questions reach out to them using on their website or or or . chatbox Twitter Facebook Telegram Disclaimer I am neither a professional accountant nor a financial consultant. All of the following information is provided for informational purposes only. Information compiled above could be a result of specific use-cases faced by people I know and not always applicable to every individual. So, it is not intended to substitute for tax, audit, accounting, investment, financial, nor legal advice. For financial, tax, or legal advice please consult your own professional.

Coinbase

Facebook

Twitter

5 Ways to Keep Track of Your Cryptocurrency Taxes

What is Coinbase’s ‘Application Disabled’ error and how to resolve it?

Write for BearTax

Read My Stories

Head of Product

Too Long; Didn't Read

Received 1099K from Coinbase Pro? Here’s how to deal with it.

Received 1099K from Coinbase Pro? Here’s how to deal with it.

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

3 Tips to Avoid Loss on Bitcoin, Ethereum, Litecoin

0 to Pro Crypto Trader: Your Ultimate Guide to Bitcoin and Altcoin Investing

05/03/2018: Biggest Stories in the Cryptosphere

14/03/2018: Biggest Stories in the Cryptosphere

3 Tips to Avoid Loss on Bitcoin, Ethereum, Litecoin

4/12/22: Top 5 Trending Tech Companies: #5 Intel, #4 Apple, #3 Coinbase, #2 Amazon, and #1 Microsoft

3 Tips to Avoid Loss on Bitcoin, Ethereum, Litecoin

0 to Pro Crypto Trader: Your Ultimate Guide to Bitcoin and Altcoin Investing

05/03/2018: Biggest Stories in the Cryptosphere

14/03/2018: Biggest Stories in the Cryptosphere

3 Tips to Avoid Loss on Bitcoin, Ethereum, Litecoin

4/12/22: Top 5 Trending Tech Companies: #5 Intel, #4 Apple, #3 Coinbase, #2 Amazon, and #1 Microsoft

Light-Mode

Classic

Newspaper

Minty

Dark-Mode

Neon Noir

Minty

HN StartUps