Topic: Coinbase 1099-K to be sent. Confused on details on receiving one? (Read 174 times)

Well I did 20,000 usd or more in 2017.  But less than 200 transactions. So had no
1099 sent. Cash outs for mining in my case. Anyway how it shook out for me.

What does the 200 transactions mean, I am assuming it is 200 USD withdrawals?

I might be wrong, but mining is classed as a business activity.

So the sales from your mined LTC is your revenue.

The cost of your miners + the electricity you expended in mining are your costs.

Revenue - costs = your profits. And you pay tax on your profits.

As always, get some advice, forums like this are no place for tax advice. Perhaps phone the IRS to ask them how to handle it.

I tried multiple time to contact the customer service without success. The above statement is very clear from Coinbase.

Thanks again

I did more than 20k but did so mining...thus..it does not seem to apply to me..(i should check my coinbase online account thou anyway)

anyway see below from the above posts and this is from the coinbase support page

What are "Business Use" accounts?

"Business Use" means accepting virtual currency payments into your Coinbase Account in exchange for the provision of goods and/or services to your customers. We use the best data available to us to determine whether your account activity qualifies as Business Use, including but not limited to factors such as completion of a merchant profile or enabling merchant tools. Here are answers to frequent questions about qualifying Business Use:
 

    Is receipt of mining proceeds considered a "Business Use?" No. In general, the receipt of virtual currency from mining activity does not meet the definition of Business Use, since it is not a payment you received from a customer for your provision of goods or services.
    What about virtual currency I transfer in from another wallet I control? If you use multiple virtual currency wallets and transfer virtual currency into your Coinbase Account, that transfer should be excluded from the 1099-K form, since it is not a payment from your customer.


anyway, as a miner I think you are ok from the above....

but again,double check coinbase

brad

I am in the same situation as you.
Mined and transfer BTC to coinbase then sold them for cash and transfer the cash to my bank account.
I did more than 20k with less than 200 transaction.
I spend a lot of time wondering where is my 1099-k.

Thanks for your post.

Not much interest in this thread..but to wrap it up ...I think I found out how my mining falls under Coinbase sending out a 1099-K form to the IRS.

Again this is the Coinbase Support Thread this info comes from:   https://support.coinbase.com/customer/portal/articles/2721660

quote:


What are "Business Use" accounts?

"Business Use" means accepting virtual currency payments into your Coinbase Account in exchange for the provision of goods and/or services to your customers. We use the best data available to us to determine whether your account activity qualifies as Business Use, including but not limited to factors such as completion of a merchant profile or enabling merchant tools. Here are answers to frequent questions about qualifying Business Use:
 

    Is receipt of mining proceeds considered a "Business Use?" No. In general, the receipt of virtual currency from mining activity does not meet the definition of Business Use, since it is not a payment you received from a customer for your provision of goods or services.
    What about virtual currency I transfer in from another wallet I control? If you use multiple virtual currency wallets and transfer virtual currency into your Coinbase Account, that transfer should be excluded from the 1099-K form, since it is not a payment from your customer.


unquote


I did not read further down on the Coinbase support page. From what I can tell, if it is Mining (above) I don't get one. Also if I transfer crypto from another wallet to the coinbase

wallet, it does not apply.


I see nothing about a 1099-K on my Coinbase account as of 2/3/18.....So guess, it is one less form I need to gather for taxes.

Anyway, seems to be cleared up.

Brad

I'm a bit confused. I have made more than 20k in transactions from coinbase, (from mining LTC and withdrawals to cash in 2017)

Here is a link to their info page on WHEN supposedly they should have been sent. (by sent I assume electronically)

https://support.coinbase.com/customer/portal/articles/2721660


The passage from the above that is confusing is below:

quote

Will I receive a 1099-K?

In the U.S., Coinbase files Form 1099-K for qualifying customers, as described below, that have engaged in at least 200 virtual currency sale transactions whose total value is equal to or greater than $20,000 during the calendar year.* You are a qualifying customer if you meet the transaction threshold requirements and:

    Your account is for business use, as described below, or
    Your GDAX sale volumes exceed the applicable thresholds. For GDAX users, a single “sale transaction” is effected each time you execute a virtual currency sale order on GDAX.

Coinbase will provide a copy of the 1099-K to you on or before January 31 for the prior calendar year. We will provide a separate copy to the IRS.



end quote

So....this line below, that is the kicker, that has me confused:

quote

*that have engaged in at least 200 virtual currency sale transactions whose total value is equal to or greater than $20,000 during the calendar year.*

end quote



So, I in NO WAY did I do 200 transactions (maybe 20), but DID move more than 20K to cash via Coinbase, selling LTC mining profits to my bank...so anyone know exactly how this pans out?

thanks, I just checked it is 2/2/18 and I have nothing in my account on a 1099-K yet, unless it arrives by snail mail

tried support a couple times..they just shoot me to the above link

again, probably not a big deal, I'm legal as heck, but if they are late on sending these would like to know, trying to set up CPA appointment

and/of course, did this thread for those who may be in my position mining, that also may be scratching their head on the above

feel free to post here, hopefully, someone managed before the rush to coinbase to get this clarified with support

thanks

brad