Coinbase is a cryptocurrency exchange which provides everything from beginner-friendly investing to advanced charting and a full suite of trading tools.
With this in mind, users often make many transactions on the platform, so it helps to use tax reporting software like Cryptiony. Let’s look at some of the features of Coinbase which could affect your taxes.
Coinbase is a centralised cryptocurrency exchange which facilitates trading for all levels of traders.
In the past, Coinbase was split into two platforms, Coinbase and Coinbase Pro. Coinbase Pro catered for more advanced traders and featured a more feature dense user interface. But more recently, the two platforms have merged into one and users have been instructed to transfer assets to Coinbase.com. However, all past Coinbase Pro transactions are still available to import to Cryptiony.
Users can generate profits on Coinbase from capital appreciation, trading, staking, referral fees and more. All these transactions are available to import from your transaction history, which we will get into next.
Crypto taxes are usually attributed to either Income or Capital Gains Tax. There are different tax rates for each. This means the tax you owe depends on how profits are generated.
In the UK, there are many instances that HMRC will class as a taxable event. For example, swapping BTC for ETH.
There are many of these types of events you should be aware of to calculate your Coinbase taxes. But if you import your transactions to Cryptiony, our automated software does it for you.
When importing transactions from Coinbase to Cryptiony, using the Coinbase API is the most straightforward method.
To do this, you should first generate your Coinbase API.
Generate your Coinbase Pro keys
To generate your Coinbase API keys, the steps are as follows.
Sign in to Coinbase. Select your profile and click API from the dropdown box.
Select New API Key.
Set the permission to read-only.
Create a passphrase, and when the API secret pops up, store it somewhere safe.
Import transactions to Cryptiony via an API
Once you have your Coinbase API keys, you can easily import to Cryptiony by following the steps below.
Sign up for Cryptiony.
From the Cryptiony dashboard, click transactions, then add transactions.
Select Coinbase, then integrate with the exchange API.
Input your Coinbase API keys on the site into Cryptiony and click integrate.
Sometimes, importing your transactions as a CSV rather than via an API is easier. In these cases, you should follow the steps below.
How to download Coinbase transactions
Log into your Coinbase account.
Click profile, then settings.
Select privacy and then request data export.
Click the transaction history box.
Hit send request. Then Coinbase will send the CSV to your email address.
How to upload transactions to Cryptiony
Log in to Cryptiony.
From the dashboard, select transactions, then add transactions.
Click integrate the exchange on the top right of the screen.
Select Coinbase, then import the transaction file.
Select your Coinbase transactions CSV file and hit import.
To import your Coinbase Pro transactions into Cryptiony, you must do them separately to your Coinbase transactions. You can access your Coinbase Pro transactions via the Coinbase website and download them as a CSV.
Yes, Coinbase profits are taxable under HMRC crypto regulation, and the same goes for most countries worldwide. Check out our UK crypto tax article to learn more about crypto taxes in the UK.
Yes, Coinbase agreed to report transaction information to HMRC for users with more than the equivalent of $5000 in their accounts.
Coinbase sends IRS-1099-MISC forms to US users who meet a criteria. But this service is not available for citizens of other countries. Instead, if you are from another country, you should download a tax form from your local tax authority’s website.
To import taxes into Cryptiony software, you must import your Coinbase and Coinbase Pro transactions separately.
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