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How to Do Your Coinbase Wallet Taxes & Integrate Coinbase Wallet with Accointing

Either automatically or through CSV, link your Coinbase Wallet with Accointing. You can also use Accointing for mobile and desktop to compute your Coinbase Wallet taxes.

Are you looking for help creating your Coinbase Wallet cryptocurrency taxes and preparing a Coinbase Wallet tax report? This guide takes you through everything that comes with Coinbase Wallet tax and Coinbase Wallet tax paper for whatever transaction, stakes, or any Coinbase Wallet loan. Accointing is a Cryptocurrency tax software that will help you produce a tailored Coinbase Wallet tax statement that directly addresses the history of your Coinbase Wallet deals in just minutes. 

What is Coinbase Wallet?

Coinbase Wallet is a digital wallet (self-custody wallet), that provides you total control over your cryptocurrency. With a Coinbase Wallet, you can keep all your cryptocurrency together, access a vast array of dapps and thousands of tokens, and safeguard your digital assets.

How is Cryptocurrency Taxed?

Yes, Cryptocurrency or Bitcoin income in the US is liable to both income tax and capital gains tax.

This is because according to the IRS, Cryptocurrency is an "Asset". Therefore, in the same way, properties such as gold, or stocks are all subject to capital gains tax and income tax, every crypto coin in the blockchain such as Bitcoin (BTC), Ethereum, etc., are no different.

  • Capital gains tax – This is a tax you pay off the profit you make by selling or disposing of an item (asset) with increased value. The tax is charged for the profit (gain) realized from the sales, and not the entire income.
    E.g - You bought cryptocurrencies for $5,000 and disposed them for $20,000. The gain from this is ($20,000 - $5,000) = $15,000. 
  • Income tax – This is the tax you pay on the money you earn, which is the case if you earn on cryptocurrency. You can pay income tax if - you are self-employed and make income, you are employed, or received support payments or grants, etc.

How Are Gas Fees Taxed? 

Each time you do a transaction on the Ethereum network, you must pay a gas fee. Different tax laws apply to what fees can be deducted on a cost basis. Because of this, whether your gas fees are tax-deductible will depend on the kind of transaction you are conducting.

E.g - For $3,000, you purchase 1 ETH. $100 is the gas fee. $3,100 is your actual cost basis (after adding $100). You eventually dispose of your one ETH for $4,000 on the open market. Another $100 is charged for gas. To make $3,200, add it to your cost base.

Does Coinbase Wallet Report to the IRS?

Coinbase currently distributes Forms 1099 to US traders who earned more than $600 in bitcoin prizes or staking in the previous tax year. It is important to note that such tax forms don`t reflect capital gains and losses.

This 1099 form informs the IRS that a client is actively utilizing the system and may have cryptocurrency activities to report other than prizes or staking.

How Does Coinbase Wallet Tax Reporting Work?

Most people wonder where to get a proper Coinbase Wallet tax report. There is no way to obtain a tax report of this nature straight from Coinbase Wallet. To review your transaction history, you can utilize your Coinbase Wallet portfolio tracking system and calculator to review your transaction record, evaluate your Coinbase Wallet tax statute and produce a tax report following the regulations of your country. To move your Coinbase Wallet activity into Accointing, you must first link your wallet.

  • Automatically - Just give us your Coinbase Wallet address, and we will handle the rest.
  • CSV - Export transaction history from Coinbase Wallet and import into Accointing
  • Accointing templates - Download our template, complete it, and submit your data to get started.

Integrate with Accointing Via the Coinbase Wallet Address

Accointing simplifies API integration with Coinbase. Accointing can be integrated with your Coinbase account by following these simple steps.

  1. Go to the API setting on your profile menu
  2. Click “New API”
  3. Choose “Create API Key” and copy your key
  4. Next, choose “Add Wallet” on your Accointing account
  5. On the dropdown menu, choose Coinbase Wallet
  6. And click “Connect with Coinbase,” and you are good to go

Integrate with Accointing via the Coinbase Wallet's CSV/XLSX file

If you don’t want to link your Coinbase wallet with Accointing directly, you can also do so by importing a CSV file containing your history of trades, withdrawals, and deposits. Here is a simple step to go about it.

Downloading CSV files from Coinbase wallet

  1. Go to the profile page of your Coinbase Wallet.
  2. Choose Statements from the menu that drops down.
  3. Then click "Accounts" and "All Accounts."
  4. Set your desired start and end date
  5. Next, choose CSV as your format of choice.
  6. Your email address must be given.
  7. Go to your email and click on the file to download it.

Importing CSV files into Accointing

  1. In your Accointing account, click "Add wallet."
  2. Click on Coinbase Pro in the list of options.
  3. Select "Import a file" and click "Continue."
  4. Enter "Coinbase Pro" as the name of your wallet and choose the CSV file you downloaded.
  5. Choose the “Import All” from the drop-down menu.
  6. To begin importing the data, click Save.

How to Review and Track Your Coinbase Wallet Transactions in Accointing

  1. After you upload your Coinbase Wallet activities, your portfolio summary will show up on the Accointing dashboard. 
  2. To review the performance history of your Coinbase Wallet, earnings, and losses, select the appropriate start and end dates.
  3. Analyze your buy and sale dates by clicking on various cryptocurrencies.
  4. Additionally, you will be able to compare the performance of multiple assets at the same time.
  5. Your Coinbase wallet asset and distribution are now easily accessible. Additionally, find out what assets are stored in what wallets.

Common Issues with Importing Transactions from Coinbase Wallet

  • Numerous transfers from Coinbase Wallet have been unsuccessful in the past because of issues with Chase and multiple transfers.
  • The fees with Coinbase Wallet are quite expensive. Using Coinbase, you may choose between three distinct pricing tiers (Exchange, Pro, and Prime).
  • Coinbase Wallet fees are on the high end when it comes to transactions. They make sure you pay for their excellent user experience and security.
  • Coinbase Wallet frequently loses connections. Some consumers wait over 2 hours for a transaction. Others get frustrated and cannot make a transaction all day.