At the time of writing, we are more than halfway through November, with December fast approaching and tax season just around the corner. If you haven’t thought about your taxes yet, you should be, especially if you are someone who actively trades or earns cryptocurrency.
While the cryptocurrency industry has gained traction over the past few years, you still may not know where to begin to look for resources that can help you get your taxes done. The good news is that there are great products out there designed to make the crypto tax filing process seamless.
One of the notable tax products out there is Koinly, which is designed to make doing your crypto taxes quick and efficient. If you have heard of Koinly in the past but would prefer to learn more about what it is and what you can expect to receive before you dive in, here is a comprehensive review that will tell you everything you need to know about this crypto tax calculator!
Free Sign-Up (Only Pay for Your Reports)
The problem with many tax software solutions that are currently on the market is that you are required to make a purchase before you are able to determine whether or not it is the right program for you. If you find that you are not happy with the way the program functions, you are out of your money and must either continue using it or find something else.
Rather than following this model, Koinly offers a never-ending free trial that gives you the opportunity to try it out before you decide to make any purchases. The only time you will be asked to pay is when you decide to download a report. Currently, they offer three plans, which consist of the following pricing options:
What Does Koinly Provide for Users?
Koinly provides comprehensive reports for crypto users and does a significant amount of the hard work for them. Like a good crypto accountant, Koinly takes your information and figures out what you owe. So, what can you expect when using Koinly?
- Quick Data Imports and Wallet Syncing– With Koinly, there is no having to worry about searching through your transaction history and manually adding that data to the program. Instead, they allow you to easily sync with popular exchanges and import wallet data, which they will then analyze. At the moment they support over 300 exchanges, 10 blockchains, and 6000 cryptocurrencies.
- Capital Gains/Losses Report– Once your data is added to Koinly, the program will begin analyzing your transactions to provide you with a comprehensive capital gains report. The report can be calculated using FIFO, LIFO and various other accounting methods. It will also show you where you may be able to claim losses through the various accounting methods available in your country (over 100 countries are supported). You will be able to separate transactions so you know which crypto you bought, which you received as income, and which may have been lost or stolen, if applicable.
- Download Your Chosen Tax Report– No matter what type of report you may need to file along with your regular taxes, Koinly has you covered. Featuring forms such as the K4, the 8949, the Schedule D, and the FBAR, you don’t have to worry about not having access to the forms you need.
Are There Any Additional Features?
While Koinly focuses on producing quick and accurate crypto tax reports, it also provides users with extra features that help to improve their tax experience beyond the basic steps listed above. These additional features include:
- The Ability to Export Crypto Reports to Major Tax Software– Being able to send your information to your traditional tax software is necessary. With Koinly, you have the ability to export your reports to major software providers such as Xero, TaxAct, and TurboTax.
- Audit Logs– Being audited is always a possibility, especially if you are using cryptocurrency. To make sure that you have all of the information you need in the event of an audit, Koinly produces fully-compliant audit logs that outline all of your transactions over the year.
- Crypto Trading Insight– Beyond your current crypto gains and losses, Koinly makes it so that you can see how trades will affect your taxes before you make them. If you are an active trader, this feature will come in handy for years to come.
Get Started Now!
Even if you are all caught up with the crypto taxes in your country, making sure that you have a tool to guide you and keep you on track is an invaluable resource. As we move into 2020 and it comes time to do your taxes again, consider Koinly for your crypto tax needs!