Coinbase, the American cryptocurrency and wallet service, has teamed up with Intuit Consumer Tax Group to integrate the latter’s popular software TurboTax. This will greatly facilitate Coinbase and Coinbase Pro customers in the US the process of claiming crypto trades on their taxes. Coinbase customers can upload as many as 100 transactions at once. The transactions will be automatically imported into a new, crypto-specific section of TurboTax Premier.
Since there has been much confusion in the community about crypto transaction on their taxes, Coinbase decided to provide these new resources to facilitate the filing of crypto taxes. The integration will work directly through Coinbase’s retail platform, or its Android and iOS apps. Moreover, an educational guide on crypto currency and taxes has been made available to all the users of the Coinbase platform.
The legal definition of cryptocurrency in the US remains unclear. Therefore, the way by which holders are obliged to claim it on their taxes is unclear too. Intuit Consumer Tax Group has noted that “not every cryptocurrency transaction constitutes a taxable event.” Although users of TurboTax Premier can enjoy a lot of professional guidance to understand and select which transactions are taxable, Intuits indicates that taxes are due for customers who converted cryptocurrencies to fiat, sold cryptocurrencies, spent it to pay for goods or services, or received free coins through a fork or airdrop.