How to Do Your Coinbase Pro Taxes?
Coinbase Pro is a crypto exchange run by Coinbase Global that caters to more professional traders.
Users may also make use of industry-leading encryption measures to help secure their cryptocurrency investments. It has cheaper costs than Coinbase and a wider range of assets to trade, including around 130 cryptocurrencies.
Novices may find it challenging to operate. Coinbase Pro, on the other hand, may be a good platform for active traders because of its wide assortment of digital currencies and advanced order types.
Coinbase Pro-Tax Reporting
Crypto is classified as a digital asset in the United States, and the IRS handles it similarly to equities, securities, and other financial assets.
Your earnings from cryptocurrency are subjected to taxation, but not like other assets. The tax on crypto is based on how you received it (capital gain or income) and how long you held it (long-term and short-term).
Capital gain event: When you sell your bitcoin, you will experience capital gains or losses. This includes selling your bitcoin or swapping it for other cryptos on Coinbase Pro.
Income tax events: If you earn cryptocurrencies as a source of income, it is classified as personal income and is subject to taxation.
Will Coinbase Pro Provide me with Tax Documents?
Unfortunately, Coinbase Pro and other crypto find it hard to give you comprehensive tax data for a reason.
Most cryptocurrency investors utilize a variety of exchanges, wallets, and platforms to move their funds. Coinbase Pro, for example, can only see transactions that take place on their platform. Coinbase Pro won't be able to monitor your cost basis and compute your total crypto tax burden if you purchase or sell your bitcoin on a separate platform.
Luckily, there is another option for investors to appropriately get their Coinbase Pro tax documents and submit their taxes. ZenLedger easily calculates your crypto taxes and also finds opportunities for you to save money and trade smarter. Let’s find out how to do your Coinbase Pro taxes with the help of ZenLedger.
Connecting Your Coinbase Pro To ZenLedger For Your Crypto Tax Documents
As one of the most comprehensive cryptocurrency tax software options on the market, we have import instructions for well over 400+ exchanges.
Within ZenLedger, on the Import Transactions page and Exchanges tab, select the Exchange you want to import. Then you'll see a table that outlines the possible methods. For many centralized exchanges, we support a direct API code import, while others may require a CSV import. Decentralized exchanges may require a wallet address.
To import your transactions from an exchange, simply navigate to the [Exchanges] tab of the [Imports] page. Select the exchange that you are looking to import, (Coinbase Pro, in this case) and instructions will be provided for that specific exchange!
The Bottom Line
Coinbase Pro has a great user interface and might be a good choice for busy traders. Over 130 cryptocurrencies are available for users to purchase, sell, and trade and the site offers fee savings for high-volume trading. Coinbase also has a high security and compliance record, so it's worth considering if account security is an issue for you.
- 130+ crypto supported
- More trading possibilities
- The fee structure is straightforward
- High security
- Easy-to-understand graphs
Coinbase Pro is a wonderful alternative if you want more complex investment choices. Although it is simple to use, the numerous options might be bewildering. On the Coinbase Pro platform, though, you'll save a lot of money on fees and be able to do a lot more.