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New Member
posted Jun 6, 2019 7:51:36 AM

What is the most appropriate way to report the gains or losses from Coinbase transactions?

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1 Best answer
Level 13
Jun 6, 2019 7:51:38 AM

Sales of crypto currencies are reported using the "Stocks, Mutual Funds, Bonds, Other" interview, telling TurboTax that no 1099-B was received.  As to the "type" of investment sold you can simply use "Everything else."

Even a "swap" of one crypto currency into another crypto currency is considered a reportable sale.  You convert the new crypto currency received into US Dollars at the spot price of the new coin at the time of the sale; that's the reported "proceeds" for the sale of the old coin and it's also the basis of the new coin.

Tom Young

3 Replies
Level 13
Jun 6, 2019 7:51:38 AM

Sales of crypto currencies are reported using the "Stocks, Mutual Funds, Bonds, Other" interview, telling TurboTax that no 1099-B was received.  As to the "type" of investment sold you can simply use "Everything else."

Even a "swap" of one crypto currency into another crypto currency is considered a reportable sale.  You convert the new crypto currency received into US Dollars at the spot price of the new coin at the time of the sale; that's the reported "proceeds" for the sale of the old coin and it's also the basis of the new coin.

Tom Young

New Member
Jun 6, 2019 7:51:40 AM

Thanks Tom, can you comment on the Sale Category?  If I bought and sold the coin over the course about a week, that must be short term. But Covered/Not-covered...?

Level 13
Jun 6, 2019 7:51:42 AM

If you tell TurboTax that no 1099-B was received, then "covered/noncovered" is not an issue.  Than only pertains to sales reported on a 1099-B.