Post
Topic
Board Press
Re: [2018-04-15] Will Coinbase Report My Bitcoin Gains to the IRS?
by
Apex Investments
on 16/04/2018, 23:28:15 UTC
Yes, if you've made more than 20K in profits on your crypto then they will report it to the IRS. 

Remember, you only pay crypto taxes when you sell so you won't owe anything on unrealized gains.

It's best to hold your crypto for over a year so you will pay the lower long term capital gain tax rate. 

On a related note, I expect some adjustments to how crypto taxes are calculated in 2018.  Currently, you pay taxes when you sell but also when you convert from one crypto to another.  This isn't an issue with Coinbase since it doesn't offer exchanges but is something that needs to change since it adds a lot of complexity to tax filing for smaller investors. 

Hopefully, we'll see some changes on this front with more Wall Street money coming into this space. 

Call me cynical but I think Washington will listen to Wall Street's concerns more than smaller crypto investors.