Compiling taxes for crypto transactions has been a thorn in the side of investors for a long time. This is because, unlike traditional markets, crypto transactions can be numerous as investors move to their preferred projects, and tax filings require that all of these transactions be reported. Given this, Koinly has taken it upon itself to provide a suitable tool for compiling a crypto tax report from the comfort of your home through an easy process.
Tax-Ready In 20 Minutes With Koinly
With Koinly, crypto investors do not have to worry about compiling their crypto taxes by importing their transactions one after the order. The platform makes it so that users can easily import all of their crypto transactions directly from the ledger. It also offers the option to sync all of a user’s exchange trading history and compile them into a ready-to-file tax report. The best part of this is that it only takes a matter of minutes and happens in one click.
This means that traders do not have to worry about placing countless trades on exchanges. Even when coins are spread across multiple wallets and users do not have a record of anything, Koinly makes it possible to easily compile all of this information using one click. Thereby eliminating the long and arduous process of downloading CSV files, formatting the data, figuring market prices, and getting the calculations right for the correct tax.
Its API sync is a smooth process that features an easy-to-use interface. Users can choose to add their exchange accounts using the API or the downloaded CSV files, and then they can connect their blockchain wallets using the public addresses.
Anywhere, Everywhere In Crypto
The advent of the decentralized (DeFi) space has seen crypto users placing more trades than they would normally do. This has now opened up the problem of tax filings which can take hours to file the done manually. However, using Koinly, users are able to pull all of their transactions from the blockchain onto a ready-made report.
This cuts across DeFi, margin trading, and futures across more than crypto exchanges and wallets. What’s more, Koinly also offers smart transfer matching. What this means is that it helps users keep track of all of their transfers and keep a record of what the coins cost originally.
Additionally, users are able to track their holdings and portfolio using Koinly. It offers a simple and stylish dashboard where users are able to track the growth of their holdings over time and see their return on investment (ROI) over a certain time period. It also shows profit and loss, as well as capital gains, helping users to easily track if they are making a profit or a loss.
Koinly also works with other tax filing software such as TurboTax by allowing users to import their reports easily onto Koinly. It is also valuable when working with an accountant as it provides all of the information needed for the accountant or the user to format their report. It is the most comprehensive tax filing platform that caters to crypto investors.
Calculating Your Crypto Taxes
Koinly provides a tax calculator for crypto users on its platform. Using this tool, users can calculate the invested fiat among and return on investment (ROI), so they can see how much they have invested in their coins. This way, users can easily compile their taxes without having to go and check their invested amounts one after the other.
It doesn’t matter if the coin you invested in was a ‘shitcoin’ that didn’t go anywhere, Koinly’s tracking spans more than 17,000 coins so that you can adequately account for all investments and trades.
When it comes to filing crypto taxes, the majority of investors have found themselves lacking. This is because even those who have made losses on their cryptocurrency holdings are also required to file taxes.
Koinly helps to eliminate the issues with filing the taxes by tracking all of a user’s activity across various exchanges and platforms. By collating this data, Koinly is able to provide accurate market prices at the time of trades and provide information on the profits and losses made on each trade.
Better For Accountants
Koinly allows accountants to easily manage the crypto tax reports of multiple clients at once. The generated reports are ATO, IRS, HMRC, and CRA tax office compliant.
Accountants can also import data from over 600 integrations and have the tax reports filed in their local currency. Reports are also filed according to the tax law of the client’s home country. Koinly’s software also tracks errors to fix them in realtime.
To use Koinly, accountants can sign up for an account and send an invite to their client(s), or the client(s) can invite the accountant to access their portfolio if they already have an account.
Koinly provides informative and educative materials to all users on its blog. On this page, users can get information about various spheres such as how to pay fewer taxes through crypto tax-loss harvesting, how rebase tokens are taxed, how to file taxes for funds earned on lending platforms such as Nexo, etc.
It also provides country-specific information for all users. An example is this guide which tells Australian users how much they should expect to pay in taxes for the year 2022.
Koinly is one of the first tax solutions to cater exclusively to crypto users. With over 3 years of experience in the space, Koinly has helped thousands of investors file reliable tax returns with ease.
It was created by CEO Robin Singh and its base of operations is in London, England. Koinly has received glowing reviews from users due to its presentation of taxes in a way that tax agencies can understand.
So far, the platform has helped file 11,000 tax reports and more than $250 million has been tracked. Its intuitive software coupled with guidance from industry experts helps save users hours on tax filings.
With Koinly, owning and managing cryptocurrencies has never been easier.
To get started, visit Koinly!