Koinly tax review 2021 | Cryptocurrency tax calculator that helps to calculate your actual ROI and Invested fiat
Founded in 2018, one of the most reputable crypto tax reporting software made by the mastermind- Robin Singh. Back then, Koinly had major business locations in the UK, US, Sweden but today; it works in 20+ countries complying with the local laws.
The strict rules from ISR about the tax regulation of cryptocurrency intensifies the need for a simple, reliable, and efficient crypto tax software. From the trillion-dollar Bitcoin to every digital asset, now you have to pay tax on every trade while maintaining the crypto portfolio. However, it is not only paying taxes but also the hassle of tracking other things like staking, mining, lending, and airdrops that can be hard to manage without any help. That’s where the automated crypto tax software -Koinly becomes ideal for this job.
Being an all-rounder Tax reporting software, Koinly helps you with calculating cryptocurrency, portfolio tracking, and making accurate crypto tax reports for your every cryptocurrency trade.
What is Koinly?
Having Koinly at your back, you get accurate, reliable, and easy-to-understand tax reports in only 20 minutes with all the ins and outs recorded. Today, Koinly has expanded over 20 countries with integrating around 350+ exchanges, 50+ wallets, 6000+ blockchains, and offers 11 different helpful services. Not only it saves time and your hard-earned money, but it also provides maximum accuracy while automatically managing your cryptocurrency taxes for you as a taxpayer.
Whether you’re an individual crypto trader or crypto-investing business, you need Koinly to give a complete clear overview of your capital gains, holdings, and crypto portfolio. Plus, it offers a unique crypto tax auditing feature that saves you from the fuss of creating multiple accounts and hiring expensive crypto accountants regularly.
How to use Koinly?
As mentioned, Koinly is one of the latest crypto tax calculators in the market that calculate automated capital gains tax reports with complete API integration. It uses effective approaches while synching all the data from your cryptocurrency exchange. All you need is to follow three simple steps and get your cryptocurrency hustle covered by the efficient Koinly platform.
## 1. Import Your Transaction History
This portfolio tracking app allows you to use multiple different formats for importing transaction history from your cryptocurrency wallet/exchange. Mainly, It supports both CSV files download or manually adds the transactions using API keys. The best part about this step is that it uses a unique Auto-sync option to detect errors in your data.
2. Review Your Transactions
Next comes reviewing the transaction that you have uploaded. In this step, Koinly performs a specialized set of steps to ensure data accuracy for making reports. It calculates all the taxes, fetches real-time market data, eliminates differences in account balances, and cross-checks every transaction mentioned.
3. Download your Tax Report:
At last, Koinly asks you to download the tax reports, allowing you to have a complete overview of your realized and unrealized capital gains. On the dashboard, you can choose the tax report you want in multiple formats like PDF, CSV, Excel, etc.
Pros of using Koinly
Besides being the fastest-growing crypto tax software, it is the most straightforward, quick, and easy working mechanism for crypto tax calculation. That’s why you neither need complicated tech-savvy skills or advanced tax knowledge to get started. With that said, let’s look at some of the best reasons why Koinly is the best tax reporting software for you.
## 1. Simple and Fast Working:
The dedicated users identify it to be a simple crypto tool to work with a user-friendly interface. From dealing with Defi, Margin, Trading, Staking, Mining, ICO’s, Tokens, migrations to every crypto activity, this tool has got you covered. It is an all-rounder crypto tax tool that wears multiple hats at the same time. It can be your crypto tax reporter, tax calculator, tax accountant list, regional tax guider, and whatnot in the same chosen pricing plan.
2. Extensive Service Integration:
There’s hardly any crypto tax tool that can match the number of exchanges, koinly works with. It relieves you from the hassle of switching accounts to get all the crypto activity data in one place. Plus, it allows you to preview your capital gains and taxes for free on 350+ cryptocurrency exchanges including the most popular ones too. The software sets itself apart by giving you a guaranteed accurate crypto tax report. Whether it’s a minor change in your asset balance entry, missing transaction, or duplicate handling, you will have solutions for every issue.
3. Privacy Features with Koinly:
One major plus point, it offers different levels of security controls with an excellent 99.9% uptime on every tax report. Moreover, it has some highly effective security protocols that strictly restrict third-party interference in the software. Following the CRA’s guidelines, Koinly uses API integration when connecting with wallets or exchanges that encrypt every transaction detail using efficient 256-bit encryption.
Cons of using Koinly
Besides being a little expensive for new traders, for beginner digital traders things might be difficult to catch up, especially with formatting and final output of reporting.
Despite working on an advanced module, the software doesn’t accept payments for their services in cryptocurrency.
How much does Koinly charge?
Once you’ve signed up, the next step is to choose a pricing plan that suits your budget and trading volume. From entirely free to different prices, this platform offers reasonable pricing plans for everyone depending on the various crypto trading activities.
|Pricing Plan||Cost||Transaction Limit||Features|
|Free plan||-||10,000||Track trades/transactions Access to FIFO and LIFO reports Import transactions from multiple wallets|
|Hodler account||$49||100||Give access to FIFO, LIFO, international tax, and audit reports. Custom file reports from the cryptocurrency portfolio TurboTax and TaxAct software|
|Trader account||$99||1000||Offer courteous customer support Switch cryptocurrency regularly Increased transaction limit|
|Oracle account||$179||10,000||Access to every software feature Generate custom reports No manual charges on extra features|
How to do Crypto Tax Reporting with Koinly?
Have you ever heard of crypto tax software taking over your additional duties as a crypto taxpayer? With different cost basis methods like LIFO, FIFO, and HIFO, the way is set by default as per the accounting standards of the country.
- Complete Tax Reports:
These tax reports include the capital gain summary, margin gains, capital gain transactions, asset summary, and all your transactions history.
- Expense Reports:
Highly recommended by CPAs, It summarizes all the cost transactions you have made in the past 5 months, excluding the trading fees report.
- End of Year Holding Report:
At the end of the tax year, the tax app formats all the transactions in a simple order to check past crypto transactions.
- Turbotax reports:
Once you are finished with tax calculations, you can format your transactions from CSV format to Turbotax, Taxact, and H&R software format. It’s simple, easy, and quick without charging you extra fees.
Koinly user rating at TrustPilot 4.7 / 5
More than 82% of the users reviewed it as “Excellent” and 14% marked it as a “good” crypto calculator. These reviews are based on more than 447 comments.