Introducing Auto-Categorization for Coinbase Smart Wallets

The web3 ecosystem is rapidly evolving to make onboarding easier for newcomers. Innovations like Coinbase Smart Wallets eliminate the need for seed phrases and simplify gas fees, making it the easiest way to get people onchain. As these advancements lower the barriers to entry, we want to ensure that the tax filing experience is just as simple.

CoinTracker has always been at the forefront of supporting smart contract wallets, accurately importing the flows within transactions. However, classifying these transactions correctly —whether it's a lending deposit, staking deposit, borrowing, adding liquidity, etc. — to ensure the right tax treatment has been a challenge that no crypto tax solution has fully addressed. Until now.

With this launch, CoinTracker now auto-categorizes transactions in ERC-4337-enabled smart contract wallets, including Coinbase Smart Wallet, ensuring users get the correct tax treatment for their DeFi activities without having to manually categorize their DeFi transactions.

How it works

We’ve made accurate tax calculation for smart contract wallets incredibly easy.

1. Add your wallet: Simply sign in and add your smart contract wallet to CoinTracker by selecting a blockchain and pasting your Smart Wallet public address through our “Add Wallet” flow.
2. Auto-categorization: CoinTracker automatically detects and categorizes DeFi transactions within Coinbase Smart Wallets and other ERC-4337-enabled smart contract wallets. You will see these reflected on the Transactions page.
3. Accurate tax treatment: Sit back and relax as CoinTracker applies the correct tax treatment to your categorized transactions, reducing stress and ensuring compliance.

100% Coinbase tax calculation coverage

With CoinTracker, you get full coverage for Coinbase, including Coinbase Prime, Coinbase Wallet, Coinbase Smart Contract Wallet, Base, and cbETH. The CoinTracker x Coinbase partnership is focused on delivering the highest quality crypto tax solution for users. Our priority is to provide an easy to use and accurate solution, especially for the most advanced DeFi use cases. As crypto evolves and regulations take shape, CoinTracker and Coinbase will continue to closely partner with the north star of giving you peace of mind.