When you buy, receive, or hold digital assets using a Coinbase.com account, they are securely stored or ‘custodied’ for your benefit in a hosted digital asset wallet. At all times, these assets are yours – they never belong to Coinbase.
Do you have to report crypto on taxes if you don’t sell?
Buy, hold, and breathe easy. You don’t have to report crypto on your taxes if you only bought and held it without selling. If you buy some Bitcoin and just, you know, keep it (because you’re “HODLing” or you forgot about it or you lost your keys or whatever), the IRS doesn’t really care.
How much do you have to earn before you pay taxes on crypto income?
| Tax rate | Single | Married filing jointly |
|---|---|---|
| 0% | $0 to $44,625 | $0 to $89,250 |
| 15% | $44,626 to $492,300 | $89,251 to $553,850 |
| 20% | $492,301 or more | $553,851 or more |
| Short-term capital gains are taxed as ordinary income according to federal income tax brackets. | ||
Is converting crypto on Coinbase a taxable event?
Taxable just means “subject to tax.” Most crypto activities are taxable, but not all. Buying and holding crypto, or minting and holding an NFT aren’t taxable events. However, selling and converting crypto are taxable. (See unrealized capital gains and losses below for another example.)
Is swapping crypto taxable?
Swapping one type of crypto for another (for example, trading ETH for ADA) is a taxable event. The IRS views this as selling the first coin for USD, then using USD to buy the second coin. This is also true when converting to a stablecoin like USDC.
Does losing money in crypto help taxes?
Yes, you can write off crypto losses on taxes even if you have no gains. If your total capital losses exceed your total capital gains, US taxpayers can deduct the difference as a loss on your tax return, up to $3,000 per year ($1,500 if married filing separately).
Do I have to report my Coinbase on taxes?
Depending on the amount of income and the type of income, taxpayers may receive a 1099-K from Coinbase — but even if the taxpayer does not receive a 1099-K, they are still required to report the income.
Do I have to pay taxes on Coinbase?
If you earn $600 or more in a year paid by an exchange, including Coinbase, the exchange is required to report these payments to the IRS as “other income” via IRS Form 1099-MISC (you’ll also receive a copy for your tax return).