Do you have Coinbase Wallet investments? When tax time comes around you’re likely going to have a lot of questions about preparing your crypto taxes. We’ve put all the answers together in this easy-to-use tax guide. When it comes to trade history and profit and loss calculations, we’ve got you covered.
How to prepare Coinbase Wallet taxes
Thinking about your Coinbase Wallet taxes? While the Coinbase Wallet exchange might be well-known for being easy to use, that doesn’t make your crypto taxes any easier! The IRS taxes cryptocurrency in the same way as property and other investments. So you’re going to need to know your capital gains and losses from all transactions. To get started - you will need your Coinbase Wallet transaction history.
How to download & export Coinbase Wallet trading & transaction history
You can download and export your Coinbase Wallet trading and transaction history within your Coinbase Wallet account. There are two ways to do this - and one is much simpler than the other!
- Use the Coinbase Wallet tax report API with crypto tax software. If you use the Coinbase Wallet tax reporting API with a crypto tax app - all your Coinbase Wallet transaction history will be automatically imported to your chosen app. You can see the full instructions on how to integrate Coinbase Wallet and Koinly here.
- Create a Coinbase Wallet CSV file and use this to calculate your crypto taxes (or upload it to a crypto tax app).
Does Coinbase Wallet provide a tax report?
No, Coinbase wallet doesn't provide a tax report. Coinbase Wallet doesn't have KYC and would have no way to issue a report with your details. You can, however, use your Coinbase Wallet transaction history to calculate your crypto taxes and create a crypto tax report if you use crypto taxes.
Does Coinbase Wallet provide a 1099 form to the IRS?
No. As a non-custodial wallet, Coinbase Wallet holds no KYC details and cannot issue a 1099 form to you or the IRS. However, if you're using Coinbase Wallet in conjunction with other Coinbase products like Coinbase Exchange or Coinbase Pro, both these platforms may issue 1099-MISC forms to any US investors who earned $600 or more in miscellaneous income such as rewards or fees from Coinbase Earn, USDC Rewards, and/or staking in 2021
Remember, whenever you get a 1099-MISC form, the IRS gets an identical copy. You can learn more about crypto 1099 forms in our blog.
Does Coinbase Wallet supply a financial statement?
No, but Coinbase Wallet doesn't provide a financial statement.
Coinbase Wallet CSV export
Unfortunately, Coinbase Wallet does not offer users a simple export CSV file option yet - but they do have a great API you can use with crypto tax software instead!
If you really only want to use CSV files to calculate your crypto taxes, you may be able to get a CSV file using a blockchain explorer. You'd need to use a dedicated blockchain explorer with a CSV export option for each blockchain you're interacting with using Coinbase Wallet - just get your public address from Coinbase Wallet and enter it into your blockchain explorer and use the export CSV function.
This is quite a lot of work - so instead, we'd recommend using the Coinbase Wallet tax API with crypto tax software.
Coinbase Wallet tax API
Using the Coinbase Wallet API - you can easily fetch your transaction data to your chosen crypto tax software. Just get your public address from the blockchain you want to connect with your crypto tax app. You can find this in the Coinbase Wallet app at the top of the extension. You'll need to do this for each blockchain you use to interact with using Coinbase Wallet - for example, Ethereum, Solana or Avalanche C-Chain. Once you have your public address, just navigate to your crypto tax tool, add a new wallet and paste your public address. You can see full instructions on integrating Coinbase US with Koinly here.
Does Coinbase Wallet provide an end of year statement?
No, Coinbase Wallet does not provide an end of year statement - but you can use crypto tax software to generate an end of year holdings report if you need one.
Does Coinbase Wallet report to the IRS?
No, Coinbase Wallet doesn't report to the IRS as the wallet holds no KYC data. However, if you're using Coinbase Wallet in conjunction with other Coinbase products - these other platforms may well report to the IRS. Coinbase lost a John Doe Summons case to the IRS back in 2016, which forced Coinbase to share KYC data with the IRS. The IRS used this information to send out more than 10,000 letters to Coinbase users warning they had failed to report additional income.
Do Coinbase Wallet report to other tax authorities?
No, Coinbase Wallet does not report to other tax authorities like the ATO, the CRA or HMRC. However, like above, if you're using other Coinbase products, the KYC data you share there may be shared with other tax authorities.
How to generate a Coinbase Wallet tax report
While you could generate a tax report yourself, it can be a very complicated process. Wherever you live, your tax office wants to know about all your taxable crypto transactions. This includes any time you made a capital gain or loss from selling, trading, spending or gifting crypto. It also includes any additional income from crypto investments - like through mining, staking or airdrops.
The easiest - and best - way is to use a crypto tax app - like Koinly. You’ll save yourself hours!
If you use the Coinbase Wallet tax report API, your crypto tax app will calculate your Coinbase Wallet taxes for you and generate a pre-filled tax report based on your location - for example, the IRS Form 8949 and Schedule D or the ATO myTax report.
Have been contemplating using a tax calculator for your crypto taxes? Wondering if Koinly is a Coinbase Wallet tax calculator tool? The answer is, yes! Not only can Koinly import your Coinbase Wallet transaction history, but it can also calculate your Coinbase Wallet taxes. As a Coinbase Wallet tax calculator, Koinly is able to do a bunch of impressive tasks that save you time and can even save you from paying too much tax at tax time.
In short, here’s what Koinly can do for you:
- Import all your trades including purchases, sales, swaps, and rewards.
- Convert your transactions into your country’s currency at fair market value (this in itself is a massive time saver).
- Decipher which of your Coinbase Wallet trades are taxable and which are not.
- Help you submit a clean and accurate report to your tax office.