Koinly Review: What You Need to Know About This Crypto Tax Calculator

With the government’s recent crackdown on crypto users and the changes in the digital currency tax guidelines, having the right tools on your side to help you calculate your taxes is of the utmost importance. However, trying to find the best tool for you can often be a gamble, and not every product out there is designed with your best interests in mind. 

The solution? Turning to a product such as Koinly can help you get your crypto taxes done quickly and accurately. If you have heard of Koinly.io but need some more information regarding the product before you try it out, here is what you need to know about this crypto tax calculator and what it can do for you. 

Who Is Koinly for?

Koinly provides crypto support for over 100 countries where crypto tax reporting is required (and their accounting methods are utilized). With the most common countries such as the United Kingdom, the United States, and Canada listed on their website, users can easily find their country and file their taxes. If someone’s country can’t be found listed on the website, users can reach out to Koinly for support!

What Type of Accounting Methods Are Available?

Koinly currently supports tax reporting for the First In First Out (FIFO), Last In First Out (LIFO), and Average Cost methods. Because of the complexity of digital assets, the accounting method that you use can mean the difference between paying too much and saving a significant amount of your earnings. 

By providing you with several accounting methods, you can guarantee that you will be able to generate the best tax report for your needs. 

Which exchanges / wallets does it support?

Other tax calculators can make it difficult for you to successfully pull relevant transactional information from other platforms and input this information into the reporting software. Fortunately, Koinly simplifies this process by allowing you to sync information from exchanges and wallet providers. 

With big names such as Coinbase, Binance, and Kraken on the roster of supported exchanges, you will be able to easily pull reports from your provider and upload them to Koinly to provide you with a comprehensive overview of your annual transactions and what you owe for the year. Their tax calculator supports over 300 exchanges, over 10 blockchains, and more than 6000 cryptocurrencies. 

With this kind of coverage, you will have the support you need to file your crypto taxes for almost any type of digital asset. 

What type of reports does it generate?

While capital gains and losses will be one of the main areas of focus while you are doing your taxes, you are going to need to make sure that you are covering all of your bases if you want to avoid an audit. Acting as your digital cryptocurrency accountant, Koinly does exactly that!

Besides analyzing your capital gains, Koinly also generates reports for income and gifts (as well as tokens and assets that are lost or stolen), provides you with audit logs so that you have all of the necessary information if you do find yourself facing an audit, and gives you the ability to export information to major tax software such as TurboTax and Xero. If you are in the US, Koinly can even generate the mandatory Form 8949 and Schedule D for you. Swedish customers can download their K4’s while Norwegians get a Rf1159. Koinly also supports the tax reports for many other countries.

Beyond these reports, you can also gain more insight into where you are able to claim losses to save yourself from having to pay additional taxes, and learn how trades may impact your taxes before you decide to make them. 

How to get started

Whether you have held and sold a small amount of crypto over this past year or you are a regular trader, making sure that you have an accurate tax report is vital to your financial well-being. Although being up-to-date on crypto tax laws is a necessary first step, trying to calculate your own crypto taxes can be extremely difficult. 

When you choose to use Koinly over other tax calculators, you make it easier to discover what you owe, find out where you may be able to benefit from alternative accounting methods, and understand how your transactions impact what you have to pay down the road.

When you choose to use Koinly over other tax calculators, you make it easier to discover what you owe, find out where you may be able to benefit from alternative accounting methods, and understand how your transactions impact what you have to pay down the road. 

Conclusion

With the next tax season approaching it can be a good idea to invest the time to try out a crypto tax calculator such as Koinly. While there are others such as Cointracking and Bitcoin Taxes out there, Koinly certainly has the edge in terms of design and integrations.