The most popular cryptocurrency entry point destination in the United States, Coinbase, has officially launched a crypto gain/loss calculating tool that aims to help customers in the US calculate profits and losses for tax purposes.
Coinbase wrote on Tuesday that their calculator can generate a report that outlines customer’s capital gains/losses on the platform using a “first-in-first-out” (FIFO) accounting method.
Coinbase admits that this isn’t an all-inclusive tool that accounts for digital assets purchased elsewhere or for cryptocurrencies transferred away from Coinbase. The proprietary tool is intended for customers who have bought in at Coinbase and have kept their digital assets within the company.
Coinbase cautions, “This tool provides a preliminary gain/loss calculation to assist our customers, but should not be used as official tax documentation without validating the results with your tax professional.”
While the tool may not be perfect for all cryptocurrency investors, it does signify that Coinbase is taking measures to show the United States Government that they are willing to work with them, helping to regulate and tax cryptocurrencies in the future.