Coinbase Releases Helpful Gain/Loss Calculator for Taxes
In an effort to bridge the gap between gains and losses with cryptocurrency, and how to report these events to the IRS, Coinbase has released a Gain/Loss Calculator to potentially make this a less arduous process. Coinbase is also quick to point out that they are "not authorized to give tax advice. For specific questions we strongly recommend speaking with a tax professional."
While Coinbase has already put in to practice their spreadsheet containing a user's Transaction History, which shows all sales, purchases and (BTC, ETH, LTE, and BCH) transactions received, summing up the values and determining cost basis, which was previously left to the user and/or their tax professional.
Coinbase users who have used ONLY Coinbase for as their cryptocurrency exchange for that tax year, can now utilize the company's Gain/Loss Calculator. This tool bases its calculation in first-in-first-out (FIFO) process, which assumes your earliest held coins, were your first sold. While there are other methods to figure out your gains or losses, this is the only option utilized by the tool. To further elaborate Coinbase's advisory:
Whereas this is a nice feature to offer its customers, Coinbase continually makes the disclaimer that this tool is only to help with calculation, but that they assume no liability in your tax filings and that you the user is responsible for consulting with a tax professional. Additionally they state that these tools are for use by those filing as an individual, and are not intended for businesses. It's a very nice feature for those new to cryptocurrency, or to those who've never had to calculate their gains and losses on held commodity, but get a second opinion before filing to the IRS.