Update, thank you all for your patience - here is an update on expected behavior and what is ahead!
ETH to ETH2 transfer:
Our accounting engine correctly transfers over the cost basis of ETH to ETH2 when you start staking on Coinbase.
For example, let's say you convert 1 ETH (acquired at $1,000 cost basis) into 1 ETH2. Our engine will then propagate your cost basis to the ETH2 token for tax calculations.
NOTE: There's a known (visual) bug on our transactions page display that does not make the cost basis transfer obvious, users may see the trade from ETH to ETH2 as both assets with a cost basis of $0.00. Our team is working to resolve the issue soon.
ETH2 staking rewards:
Our integration automatically tags all ETH2 rewards from Coinbase as staking rewards that factor into your taxable income.
ETH2 to CBETH swap:
Our integration does not yet correctly handle ETH2 to CBETH swaps, but this is on our near-term roadmap. Coinbase released the feature in 2023, and so it should not affect 2022 taxes.