Coinbase Tax Documents
TokenTax imports Coinbase data for easy cryptocurrency trade tracking and tax filing.
Need to handle your crypto taxes? Get help with cryptocurrency tax.
How do Coinbase taxes work?
Coinbase is one of the most popular crypto exchanges for buying and selling crypto with fiat currency, and tax reporting is important because Coinbase may report information on your trading to the IRS. Anyone who invests in cryptocurrencies should include all crypto transactions in their crypto tax calculations.
While they supply customers with their own tax calculator tool, these calculations are only accurate if you only ever bought, sold, and held crypto on Coinbase.
How does Coinbase tax reporting work?
Tax software for cryptocurrency imports your transaction history automatically from every exchange, including Coinbase and Coinbase Pro. It then calculates your capital gains and losses. Finally, you can export your tax forms and add them to your tax return.
Why can’t Coinbase always create my tax forms?
Many Coinbase customers have used an exchange other than Coinbase, such as Binance. Perhaps you bought a bit of crypto from a friend, or used crypto to purchase goods or services. The issue is that Coinbase’s tax information only extends as far as any activity you’ve done on Coinbase. They are unable to know what cryptocurrency transactions you had on other platforms as well any activity off-exchange.
Does Coinbase Send a 1099-B?
With digital currency, you can easily transfer your assets anywhere, well beyond the purview of Coinbase, meaning they may not have vital information like the cost basis (original price paid) for crypto you sell. As a result, they are not able to send you a 1099-B like a traditional broker.
While this freedom is one of the many benefits of cryptocurrency, it also means that you’re responsible for keeping track of all your transactions across all crypto platforms, especially considering that crypto to crypto trades are taxable events.
Coinbase states that their own crypto tax calculations won't be accurate if you’ve:
Bought or sold crypto on another exchange
Sent or received crypto from a non-Coinbase source, like another exchange
Stored crypto in a wallet or sent or received crypto from a wallet
Participated in an ICO
Previously used a method other than FIFO to calculate your gains/losses.
If you’ve only ever bought, sold, and held crypto on Coinbase, then you can just use the tax documents that they provide. Otherwise, It’s best you use software that can aggregate all of your transactions into one place and then calculate your total gain/loss.
What if I got a 1099-K from Coinbase?
Many users received this form from Coinbase. For many, the number may seem shockingly high, but there’s no need to worry. To learn more about what this form really means, be sure to read our full article on the the Coinbase 1099-K.
How do Coinbase Bitcoin Cash taxes work?
If you were holding Bitcoin on Coinbase when the Bitcoin Cash (BCH) hard fork occurred, then you may have automatically received BCH in your wallet. Per the IRS crypto tax FAQ, assets received in hard forks like BCH are to be recognized as ordinary income.
Since BCH acquired in the hard fork is recognized as ordinary income, this means that you are liable for tax on total fair market value of the BCH received, at the time of which you came under control of the asset. This also establishes your cost basis as said market value. When you sell, trade, or spend the BCH, you recognize any gain or loss on the asset with this fair market value cost basis in mind.
Uploading a Coinbase CSV with TokenTax
At the top right of Coinbase, click the silhouette / Name and select Taxes & Reports.
In the Transaction history section, select Generate report.
Keep the settings of All time, All assets, and All transactions.
Select Generate report to create your CSV report.
Upload your CSV file to TokenTax.
Importing a Coinbase API into TokenTax
We connect securely to Coinbase with OAuth2, similar to when you use your Google or Facebook login to use services on the internet.
On TokenTax, click Authorize with Coinbase.
You'll be taken to an authorization page on Coinbase.com.
If prompted, log in to your Coinbase account.
Click Authorize. This will connect Coinbase to TokenTax.
Alternatively, you can create an API key for TokenTax integration. To do so:
At the top right of Coinbase, click the silhouette / Name and select Settings.
Click the menu header API and select the "+ New API Key" button.
Enter your authenticator code if prompted.
Select "all" accounts
Select only permissions that end in "read."
Scroll to the bottom and click the Create button.
Copy the API Key and API Secret. We'll need those in the next step.
Note: The API Secret won't be displayed after you leave this step. Make sure you write it down. If not, you'll have to start at step 2 again.
In TokenTax, go to our Coinbase Add Data page and select the "Use API Key" button.
Enter the Key and Secret, and select Submit. Your data will now be imported automatically.