Question regarding Coinbase and IRS

[fortworth777]

So does Coinbase only report to the IRS after 200 transactions with $20K in sells or is it just after you have 200 transactions? Confused

[Optional]

Only transactions that took place on Coinbase Pro, Prime, and Merchant are subject to reporting requirements.

Your personal account there is not.



There is a recent discussion about Coinbase and IRS issues in this thread;

https://www.sportsbookreview.com/forum/players-talk/3556062-crpto-owners-irs.html#post28785443

[michael777]

Thanks for the info!

[raiders72001]

So does Coinbase only report to the IRS after 200 transactions with $20K in sells or is it just after you have 200 transactions? Confused

BitPay is 200 transactions and $20k.

[fortworth777]

So for example if I have 115 transactions and $40K of withdraws will or won’t I be reported? You place a wager in Nevada and no bs or forms like this!

[xKMACKx]

How do I determine if I will be receiving a Form 1099-K?

Only transactions that took place on Coinbase Pro, Prime, and Merchant are subject to reporting requirements. To receive one:

• You must have had at least 200 orders with matches during 2018, whose total value is equal to or greater than $20,000
• Your gross proceeds from those transactions exceed the state’s threshold (see below for variations by state)
• Source: https://support.coinbase.com/custome...prime-merchant

[fortworth777]

So after 200 orders then?

[TheMoneyShot]

So after 200 orders then?

There were some posts by some other posters that they received tax forms from sells as low as $2,000. It's hard to distinguish what angle or approach Coinbase is taking.

In theory... it's supposed to be 200 transactions or 20,000+ but your guess is good as mine.

I wouldn't sell at Coinbase. But, that's just me.

[94dc4]

There were some posts by some other posters that they received tax forms from sells as low as $2,000. It's hard to distinguish what angle or approach Coinbase is taking.

In theory... it's supposed to be 200 transactions or 20,000+ but your guess is good as mine.

I wouldn't sell at Coinbase. But, that's just me.

I believe from other posts I’ve seen, you like Gemini? I did all the basics to setup Gemini but have still been using coinbase due to familiarity. Do you have any recommendation for $5-$10k a week worth of withdrawals? I don’t wanna run into any issues with coinbase. When I was playing at gtbets a year ago or so, I was using their wire option, limited at $5k a week and bitcoin withdrawal. At bookmaker exclusively anymore, thinking about the wire option they have $10k-$25k I believe, but I’ve seen no one talk about it. Timelines etc..

[alphachino90]

Is this just for USA or for Canada as well?

[littlekona]

if your doing 5-10K a week btc withdrawals using any exchange USA based will get attention as they are all getting more regulated including Gemini which now charges 2% fee to sell unless u are an API user.....Spread it out bitpay, gift cards, local bitcoins, exchanges and ATM's plus have many documented purchases through cards like bitpay to show your paying for everyday expenses....its not like it use to be

[94dc4]

if your doing 5-10K a week btc withdrawals using any exchange USA based will get attention as they are all getting more regulated including Gemini which now charges 2% fee to sell unless u are an API user.....Spread it out bitpay, gift cards, local bitcoins, exchanges and ATM's plus have many documented purchases through cards like bitpay to show your paying for everyday expenses....its not like it use to be

I have the BitPay, that’s become more complicated sadly. Details on gift cards? I know nothing about the local bitcoins, and I planned to inquire about only one local bitcoin atm ha. And I guess at the end of the day I’m ok eating some serious fees if it helps not create a shit storm. Is IRS only looking for capital gains tax? Cashapp has a statement saying they will send a form on ANY sold bitcoin transaction. Keeping track of everything is difficult ha. Profits anyways with the fluctuation of the coins.

[littlekona]

I have the BitPay, that’s become more complicated sadly. Details on gift cards? I know nothing about the local bitcoins, and I planned to inquire about only one local bitcoin atm ha. And I guess at the end of the day I’m ok eating some serious fees if it helps not create a shit storm. Is IRS only looking for capital gains tax? Cashapp has a statement saying they will send a form on ANY sold bitcoin transaction. Keeping track of everything is difficult ha. Profits anyways with the fluctuation of the coins.

gyft.com I buy them all the time plus use my bitpay all my bills food ect ect

[94dc4]

gyft.com I buy them all the time plus use my bitpay all my bills food ect ect

Oh that’s interesting! Can I Just buy from blockchain?

[littlekona]

Oh that’s interesting! Can I Just buy from blockchain?

I think so I use mycelium wallet to send to site

[TheMoneyShot]

gyft.com I buy them all the time plus use my bitpay all my bills food ect ect

Great info Kona. When you're purchasing from Gyft.... are you purchasing from other sellers? Is there a way they can stiff you? Not sending you the right amount or a bad gift card all together?

[TheMoneyShot]

I believe from other posts I’ve seen, you like Gemini? I did all the basics to setup Gemini but have still been using coinbase due to familiarity. Do you have any recommendation for $5-$10k a week worth of withdrawals? I don’t wanna run into any issues with coinbase. When I was playing at gtbets a year ago or so, I was using their wire option, limited at $5k a week and bitcoin withdrawal. At bookmaker exclusively anymore, thinking about the wire option they have $10k-$25k I believe, but I’ve seen no one talk about it. Timelines etc..

Definitely Kona is onto something.... that gyft would come in handy. Yes, I'm more comfortable with Gemini... but it's hard to move that kind of $ without a trail. You talk about wires a lot? A wire is definitely taxable. Sure, it's convenient.... but if you ever got audited... which my business has before... they can go back as many as 5 years. So, how would you explain deposits from wires? Just giving you the heads up. I wouldn't accept a wire... on any terms. Again, that's just my opinion.

[94dc4]

Definitely Kona is onto something.... that gyft would come in handy. Yes, I'm more comfortable with Gemini... but it's hard to move that kind of $ without a trail. You talk about wires a lot? A wire is definitely taxable. Sure, it's convenient.... but if you ever got audited... which my business has before... they can go back as many as 5 years. So, how would you explain deposits from wires? Just giving you the heads up. I wouldn't accept a wire... on any terms. Again, that's just my opinion.

Well I think we all hope we never get audited haha. I also own a business so it's possible on many levels. How would I explain multiple coinbase deposits and paypal deposits would be it's own set of issues. I guess we're all "gambling" in some way. The wire without it being $10k plus each never gets reported however. I have hundreds of thousands come and go through my BIG BRAND bank account so the $5k wires here and there never scared me in regards to flag. The heater im on will come to an end soon im sure and the reality of removing $5-10k a week regularly is high.

[94dc4]

Great info Kona. When you're purchasing from Gyft.... are you purchasing from other sellers? Is there a way they can stiff you? Not sending you the right amount or a bad gift card all together?

Curious about this as well..

[Arky]

Egifter.com is another option for gift cards. They take BTC, BCH, ETH and LTC.

[fortworth777]

It’s ridiculous!! Waited years to late to get into using bitcoin! Was going to start using them when they were only $1 for one bitcoin but couldn’t figure it out. Now I’ll probably get screwed paying taxes on something that shouldn’t be taxable in the first place! This government loves to screw people over!

Using nitrogen spirts I have no other options but to cash out using bitcoin, can’t get a check or any other payout option! Very very frustrating!

[raiders72001]

Great info Kona. When you're purchasing from Gyft.... are you purchasing from other sellers? Is there a way they can stiff you? Not sending you the right amount or a bad gift card all together?

You can't get stiffed and it's safer than using a credit card.

[raiders72001]

Oh that’s interesting! Can I Just buy from blockchain?

yes. https://www.gyft.com/bitcoin/

[littlekona]

yes. https://www.gyft.com/bitcoin/

Its direct from site so very safe.....another cool thing is their app as it stores all your cards and you just scan your phone at purchase...you can print them too

[94dc4]

Its direct from site so very safe.....another cool thing is their app as it stores all your cards and you just scan your phone at purchase...you can print them too

Oh that’s cool.

[7deuceoff$uit]

Jumping in here because it's a similar topic.... I usually deposit at my book with plastic, and withdraw later through btc. When it gets to my coinbase, i transfer it over gdax and sell it there at a cheaper fee, then transfer the cash back to coinbase and then to my bank. Would the same 20k or 200 transactions apply, or does this look different as i never purchase btc there? It always comes in from the book via blockchain.

[TheMoneyShot]

Jumping in here because it's a similar topic.... I usually deposit at my book with plastic, and withdraw later through btc. When it gets to my coinbase, i transfer it over gdax and sell it there at a cheaper fee, then transfer the cash back to coinbase and then to my bank. Would the same 20k or 200 transactions apply, or does this look different as i never purchase btc there? It always comes in from the book via blockchain.

I don't know how gdax works? Are they affiliated with coinbase?

Basically... if you gave your SSN to gdax and sold at gdax.... if you do over 200 transactions or over 20k. Gdax should send you a tax form at the end of the year.

Technically it's wherever you sold at.

[7deuceoff$uit]

I don't know how gdax works? Are they affiliated with coinbase?

Basically... if you gave your SSN to gdax and sold at gdax.... if you do over 200 transactions or over 20k. Gdax should send you a tax form at the end of the year.

Technically it's wherever you sold at.

I don't know exactly how it works, but yes it's affiliated. I believe everyone with a coinbase account has an account at gdax.

[TheMoneyShot]

I don't know exactly how it works, but yes it's affiliated. I believe everyone with a coinbase account has an account at gdax.

Hopefully someone else can chime in and give you more information. By law... if the exchange plans on sending a tax form to the IRS... they must send a form to you as well. Either through mail... email... or some .pdf file when you log into their webpage. Most say the word "tax" somewhere. So, if you see a form like that at the end of the year... it was reported. If you don't... then it wasn't reported.

[94dc4]

Is there a thread anywhere that people have discussed all the available “sell” options so as to be able to spread it out..

[Optional]

Jumping in here because it's a similar topic.... I usually deposit at my book with plastic, and withdraw later through btc. When it gets to my coinbase, i transfer it over gdax and sell it there at a cheaper fee, then transfer the cash back to coinbase and then to my bank. Would the same 20k or 200 transactions apply, or does this look different as i never purchase btc there? It always comes in from the book via blockchain.

There is no 200 transaction or 20K limit at Coinbase if you are simply using a personal account.


Not sure why people continue to spread this same misinforamtion over and again.

This isn't even ambiguous. Just read the Coinbase site;


Will Coinbase be issuing me a 1099-K from Coinbase?

For transactions that took place on Coinbase.com: NO

• Coinbase is not required to issue a 1099-K to Coinbase.com customers and will not be issuing a 1099-K to our Coinbase.com customers

https://support.coinbase.com/customer/en/portal/articles/2928251-coinbase-tax-resource-center

[raiders72001]

There is no 200 transaction or 20K limit at Coinbase if you are simply using a personal account.


Not sure why people continue to spread this same misinforamtion over and again.

This isn't even ambiguous. Just read the Coinbase site;


Will Coinbase be issuing me a 1099-K from Coinbase?

For transactions that took place on Coinbase.com: NO

• Coinbase is not required to issue a 1099-K to Coinbase.com customers and will not be issuing a 1099-K to our Coinbase.com customers

https://support.coinbase.com/custome...esource-center

Same with Bitpay. Merchant account only.

[7deuceoff$uit]

There is no 200 transaction or 20K limit at Coinbase if you are simply using a personal account.


Not sure why people continue to spread this same misinforamtion over and again.

This isn't even ambiguous. Just read the Coinbase site;


Will Coinbase be issuing me a 1099-K from Coinbase?

For transactions that took place on Coinbase.com: NO

• Coinbase is not required to issue a 1099-K to Coinbase.com customers and will not be issuing a 1099-K to our Coinbase.com customers

https://support.coinbase.com/custome...esource-center

Thanks optional.

[TheMoneyShot]

There is no 200 transaction or 20K limit at Coinbase if you are simply using a personal account.


Not sure why people continue to spread this same misinforamtion over and again.

This isn't even ambiguous. Just read the Coinbase site;


Will Coinbase be issuing me a 1099-K from Coinbase?

For transactions that took place on Coinbase.com: NO

• Coinbase is not required to issue a 1099-K to Coinbase.com customers and will not be issuing a 1099-K to our Coinbase.com customers

https://support.coinbase.com/custome...esource-center

I don't trust anything Coinbase says or does. For that matter... I'm also watching my transactions at Gemini. I think the heat will come down on these exchanges shortly... we all might be in for a surprise.

[DontTailMe]

gyft.com I buy them all the time plus use my bitpay all my bills food ect ect

What am I missing with this? When I click on the "Bitcoin" link in the shopping cart, the only option I see is to pay via BitPay. What would be the advantage of this? Why wouldn't I just keep my funds in BitPay, use it as a debit card, and not be tied down to a single merchant via gift card? Is there another way to pay by bitcoin that I'm not seeing for some reason?