Question about 2019 and 2020 Tax Filing on Coinbase

Hello this is my first post in the forum, since I just got to know CoinTracker from Coinbase tonight. I had to self report the Coinbase gain/loss on 2019 tax return, since they had no official tax forms to download. It’s a pain to count properly. I was told by my tax account for 2019 tax return that only Coinbase transactions bought and sold into U.S. dollars would be reported for tax purpose, because coin conversions from one to the other were difficult to count due to timing issue.

The current Coinbase 2020 tax guide: crypto and Bitcoin in the U.S. | Coinbase shows that coin conversion is taxable event too. If the coin conversion for each conversion transaction was counted in 2019 tax reporting, I would have a loss instead of a small gain that’s my first year of investment. That’s what CoinTracker showed me in detail. Should I revise my tax report for 2019 tax return to correct those losses?

If I do not correct wrongly calculated small gain into losses in 2019 tax return, it will show me having bigger gain in 2021 eventually from CoinTracker. If I use the accountant’s method, it will have a small gain in 2019 and 2020 instead of losses, but the gain in 2021 will be smaller than what CoinTracker calculated. In the end, both methods will give the same net total if counting these three years together. This is just an example below to illustrate my situation, but they are not actual numbers:

Accountant’s method: 2019 gain: $50, 2020 gain: $200, year to date 2021 gain: $400
CoinTracker’s method: 2019 loss: $100, 2020 loss: $450, year to date 2021 gain: $1200
The total gain in three years in each method are the same: $650.

Again, that’s because I did not know how to count coin conversion properly in spring 2020 for 2019 tax return and there’s no official rule on how to count so based on what the tax accountant told me.

In addition, if I received some cryptos from relatives who used my after-tax income to buy the cryptos on my behalf, and then sent to me (when I had buy amount limit due to new account restriction in first year), how would CoinTracker treat such transactions? Is it received only the same as buy the coin on myself?

Thank you.

Yes. Here’s how you can amend previous years’ returns.

Yes. Just make sure to enter those transactions in CoinTracker.