Crypto startup Coinbase is stepping up its game by helping its user base keep up with their tax obligations – it has launched its very own cryptocurrency tax calculator.
What’s Going On?
Users are eligible for United States capital gains was the message reiterated by the exchange and wallet service provider in January. Now, on March 13th, Coinbase published a blog post, stating that it has rolled out a cryptocurrency tax calculator. Since the startup wants to help its users stay up to date with their U.S. tax requirements, it has launched a gain/loss calculation tool.
What Do We Know About the Cryptocurrency Tax Calculator?
For helping its customers, a “preliminary gain/loss calculation” is being provided by the cryptocurrency tax calculator, as per the firm. Also, it can be used to create a report which highlights both their capital gains and losses on its platform. This is done by using a FIFO accounting method. The calculating tool does come with a couple of conditions cautioned Coinbase to its users.
The conditions being, the cryptocurrency tax calculator is mainly targeted at users who have previously bought and sold on Coinbase and the crypto startup does not recommend the tax calculator for individuals who have purchased digital assets on another platform. Also, “The tax calculator should not be used as official tax documentation without validating the results with your tax professional.”, added Coinbase.
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This is not the first time Coinbase has made headlines this month. In fact, on March 6, Coinbase announced that it will be rolling out a weighted index fund for cryptocurrencies. Even though investors were forecasting a different announcement – people thought the firm was going to announce the addition of Ripple to its exchange – the announcement of the index is still pretty monumental. Why? Because the index will reportedly provide investors with a simple way to get exposure to the cryptocurrency assets offered on the startup’s exchange.