I imported my Coinbase and Coinbase Pro transactions using the automated interface in TurboTax. It worked fairly well, but there are a couple transfers that I made when Coinbase Pro stopped supporting trades in November that were imported as withdrawals in TurboTax. I clicked on Edit for both of those transactions, but it won't let me select "Transfer" as the transaction type. I don't want to get taxed on a non-taxable event. How can I fix this? I deleted all my Crypto information and re-imported, and the issue still persists. Very frustrating.
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We need some additional information about what you mean by the term "transfer." It doesn't appear as if your transfer was a sale, and if the transfer merely relates to moving your cryptocurrency from one account to another, then you might be able to report the transfer as having neither a gain nor loss. However, follow-up with additional information so that we can better understand your tax situation.
I transferred the coins from my Coinbase Pro wallet to my Coinbase wallet. In TurboTax, after importing my transactions, those transfers show up as withdrawals in TurboTax. When I try editing the transaction type to correctly reflect that they were just transfers and not withdrawals, I don’t have the option of selecting “Transfer”. The only options I get are “Sale”, “Expense”, “Withdrawal”, “Sent Gift”, “Donation”, “Lost/Stolen”, or “Fee”.
Under Taxable it shows “Capital gain/loss”, but obviously this should not be a taxable event.
Given your options, you are probably left with identifying the transaction as a withdrawal. You are correct in that this is not a taxable event. Is this transfer on your tax document that Coinbase has presumably sent to the IRS? If it is not, then perhaps you can just delete the entry as it is not a taxable event. However, if the transfer is reported on the tax document, then what does it show in terms of capital gain or loss? If the capital gain/loss is zero, then you can leave it as is.
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