Formerly GDAX, more than 13 million people are using Coinbase Pro to buy, sell, stake and store more than 250 cryptocurrencies. Whatever your investment strategy on Coinbase Pro, Koinly can help you get your crypto taxes done.
The tax you pay on crypto depends on your transactions and where you live. You can learn more about crypto tax in your country in our crypto tax guides, but in general, you’ll pay either Capital Gains Tax or Income Tax on your crypto (or both!).
Yes. Coinbase Pro reports to the IRS. Coinbase Pro issues users with more than $600 in income a 1099-MISC to you. Remember - when you get a 1099 form, so does the IRS.
Coinbase also lost a John Doe summons case to the IRS in 2016. This meant the exchange was legally compelled to share KYC data for some customers with the IRS. Though Coinbase Pro was formerly GDAX - the exchange is an owned property of Coinbase and is subject to the same reporting requirements.
You’ll need to report any capital gains, losses or income from your Coinbase Pro investments to your tax office, generally as part of your annual tax return.
You can do this yourself - but it’s time consuming. You need to identify each taxable transaction on Coinbase Pro, figure out the kind of tax that applies, and calculate any gain, loss or income.
Alternatively, use Koinly to do this for you. Koinly calculates your tax liability and generates your crypto tax report, ready to file with your tax office. Here’s how to connect.
1. If you use Coinbase as well as Coinbase Pro, it's important to sync both wallets so Koinly can identify taxable transactions from transfers. See how to connect Coinbase and Koinly.
2. Coinbase & Coinbase Pro are merging soon, but you'll still need to sync your Coinbase Pro account separately with Koinly in order to get your complete transaction history.
3. If you've synced both Coinbase & Coinbase Pro with Koinly, it's perfectly normal to see transactions from Coinbase Pro to Coinbase even if you never transferred funds. This is because when you send crypto on Coinbase Pro - it is internally sent to your Coinbase account first before being sent on to the intended destination. Don't worry, transfers between your accounts aren't taxable.
You'll need to start by downloading a CSV file with your full trading history from Coinbase Pro before you can upload it to Koinly - here's how.
Now you've got your CSV file, here's how to upload it to Koinly.
1. Coinbase Pro has two different CSV files - fills and accounts. Your fills file includes all of your trades and this is the file you should use to import all your trades. You can upload your accounts file to Koinly, but Koinly only uses this file to identify deposits and withdrawals and ignores all other data.
2. If you've set up 2-factor authentication, your Coinbase Pro account may ask you to verify after you've selected send request. It's normal for these data requests not to arrive in your inbox immediately. In some instances, it may take a couple of days for your email and attached CSV file to come through, so don't panic if you don't see it straight away.
Problems connecting Coinbase Pro and Koinly? No worries - there's help at hand:
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No, Coinbase Pro doesn’t generally provide tax reports for users excluding 1099 forms for some US users.
Coinbase Pro offers 2 easy ways to export your transaction history to connect with crypto tax software - like Koinly - and generate tax forms. Either connect via API or upload a CSV file of your Coinbase Pro transaction history.
Both Coinbase Pro and Coinbase issue 1099-MISC IRS forms if you’re a US resident and you’ve made more than $600 in income. Previously, Coinbase Pro used to issue 1099-K forms if a user had made 200 or more transactions valued at more than $20,000 - however, the exchange stopped doing this as of the 2022 financial year.
If you’re going to receive a 1099 form from Coinbase Pro, you should receive it by February of the following financial year at the latest.
No, Coinbase Pro does not provide an end of year tax statement. But you can use crypto tax software to create one.
Yes. You need to pay taxes on any gain or income relating to your Coinbase Pro investments.
Yes. HMRC confirmed they’ve put pressure on Coinbase to share KYC information to ensure tax compliance. It’s likely as one of the largest crypto exchanges in the world, other tax offices like the ATO and the CRA are putting similar pressures on Coinbase Pro.
Yes, Coinbase Pro is part of one of the leading cryptocurrency exchanges in the world and is considered a secure and safe platform. However, you should always follow best storage practices for crypto and keep your crypto in a secure, offline wallet if you’re not actively trading.
No, transferring crypto between exchanges or your own wallets is not a disposal and is therefore not taxable.
Prior to the two platforms merging, Coinbase tax reports did not include any information about Coinbase Pro transactions. Following the merge, any Coinbase tax reports (1099 forms) may include your Coinbase Pro transactions as the advanced trade feature is on the same platform. This said, it very much depends on the 1099 form you receive, for example 1099-MISC forms only include information about income from crypto, not capital gains or losses from crypto.
You can’t - or you shouldn’t! Tax offices don’t look kindly on crypto tax evasion and it’s a criminal offense. You can learn more in our crypto tax evasion guide, or check out how to legally avoid crypto tax.