During tax season you can export a pdf from coinbase of crypto losses and capital gains which can then be uploaded to turbotax.

My question is..

If I used coinbase 4 years ago to buy bitcoin and sent that bitcoin to a ledger.. then today from the same ledger convert that bitcoin to USDC.. then send that USDC from the ledger to my coinbase to convert to fiat to transfer to my bank account.. how will coinbase interpret where the USDC came from and how will it determine a capital gain? Will coinbase see the transaction as just random USDC that ‘appeared’ in my account and tax it without considering it was actually converted from bitcoin purchased 4 years ago from my coinbase account?

Another thing.. I bought some $pepe 2 years ago and sent it to my ledger. 1 year ago I sent that $pepe to my coinbase. I believe coinbase is looking at the transfer as if the value of the $pepe received was whatever the price was 1 year ago (when I transferred the pepe to coinbase).. because coinbase is saying my pepe bag is in a loss and that my average price is X when in reality I bought the pepe for much less than X and am actually in profit, not a loss like coinbase seems to think… I hope all of that makes sense.

The whole thing is confusing and I don’t understand how it works when sending coins off of coinbase and then receiving coins on coinbase as far as taxes go and how coinbase interprets gains/losses in that regard. Any insight is greatly appreciated. Thank you.

submitted by /u/digitalundergrad [link] [comments]r/CryptoCurrencyRead More

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