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It is. Coinbase has to consider all withdrawals for these purposes as sales, IIRC. It's not just reporting gains

• toomuchtodo 9y ago
  The IRS guidance has been available for some time: https://www.irs.gov/newsroom/irs-virtual-currency-guidance https://www.irs.gov/newsroom/irs-virtual-currency-guidance https://www.irs.gov/pub/irs-drop/n-14-21.pdf https://www.irs.gov/pub/irs-drop/n-14-21.pdf https://www.irs.gov/pub/irs-pdf/p544.pdf https://www.irs.gov/pub/irs-pdf/p544.pdf The problem is, unlike traditional exchanges or financial institutions, people think cleverness is in order and regulation won't catch up to them. Follow the guidance, pay your taxes due, and if in any doubt about your situation, consult a tax professional. EDIT: Hoo boy are cryptocurrency taxes scary af. I'm still of the mind Coinbase should provide all of the reporting, but the taxable/realization events are going to be tricky. Examples: * "Trading cryptocurrency to a fiat currency like the dollar is a taxable event." * "Trading cryptocurrency to cryptocurrency is a taxable event (you have to calculate the fair market value in USD at the time of the trade; good luck with that)." * "Using cryptocurrency for goods and services is a taxable event, i.e., spending cryptocurrency is a “realization event.” You have to calculate the fair market value in USD at the time of the trade; you may also end up owing sales tax." Source: https://cryptocurrencyfacts.com/2017/12/30/the-tax-rules-for-crypto-in-the-u-s-simplified/ https://cryptocurrencyfacts.com/2017/12/30/the-tax-rules-for...
  • mhluongo 9y ago
    I'm not sure what your comment has to do with mine... I just know that to conservatively report, Coinbase includes withdrawals that are still in cryptocurrency as sales. You see why that might be a tax issue I imagine
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