Koinly Review: Cryptocurrency Tax Software for Automatic Tax Reports
Koinly is an online crypto tax platform that allows you to monitor all your crypto activities and generate regulatory compliant tax reports. Koinly allows you to integrate your wallets and keep track of activities including trading, mining, staking, lending, and airdrops and simplifies the process of recording all the ins and outs.
Koinly can be used to automatically import transactions, and monitors all market prices, wallet transfers, calculates your crypto gains/losses, and generates tax reports.
The platform is available in over 20 countries and integrates over 6,000 blockchains, 350 exchanges, and 75 wallets and provides a comprehensive crypto tax reporting service. The platform can be used for free with paid plans ranging from $49 to $279 per tax year.
Overview
Koinly was founded in 2018 by Robin Singh and the company retains business locations in the UK, US, Sweden, and Germany. The company operates out of retains a presence in Palo Alto, California 95124, and adheres to the laws of the State of California.
You can find out further information about the company by checking out their LinkedIn profile.
The platform is available in over 20 countries including the US, UK, Canada, Australia, and New Zealand, and allows you to import data via API, CSV files, or x/y/zpub keys and generate reports that can be downloaded as pdf files.
These include First In First Out (FIFO), and Last In First Out (LIFO) reports, Form 8949, Schedule D reports, and International tax reports, and Koinly provides a comprehensive online crypto tax auditing service that also allows users to connect with qualified tax accountants in their region.
Koinly’s Key Features
Some of the platform’s key features include:
- Multi Country Support – The platform is available to people in over 20 countries across Europe, Asia, Oceania, and the Americas. Koinly also allows users to generate localized Form 8949 and Schedule D, K4, Rf1159, and Sheet 9A tax reports.
- Extensive Service Integration – Koinly integrates with over 6,000 blockchains and supports automatic imports for Bitcoin, Ethereum, Litecoin, and NEO. It also integrates with 350 exchanges including Binance, Coinbase, Kraken, portfolio apps such as Blockfolio and Delta, and 75 wallets and allows you to easily keep track of mining, staking, and various DeFi activities.
- Easy Data Import – Koinly allows you to connect with a variety of services via API and import key data. Manual CSV file imports are also supported, as are xPub/yPub/zPub imports, and data migrations from Nexo, BlockFi, Bitmex, Deribit, and CoinTracking.
- Free Account Option – The platform can be used for free to track up to 10,000 transactions and generate capital gains tax previews. The free account can be used indefinitely to track all of your crypto trades and activities.
- Comprehensive Resources – Koinly provides a handy list of resources such as a Crypto Tax Calculator, Regional Tax Guides, a Tax Accountant list, and a Blog to keep its users up to date.
- Customer Support – The team provide a Support section, and an FAQ page that aims to address the most common queries. They can also be reached by email and live chat and run a Facebook page and Twitter account.
Which Countries Does Koinly Calculate Taxes For?
Koinly supports tax tracking and reporting for most countries, with the following nations all being supported.
- The Americas – USA, Canada
- Europe – UK, Germany, Sweden, Denmark, Finland, Norway, Netherlands, France, Spain, Italy, Austria, Lichtenstein, Ireland, Czech Republic, Estonia, Malta
- Asia – Japan, South Korea, Singapore
- Oceania – Australia, New Zealand
The team also state that a much wider range of countries that make use of a range of accountancy methods are supported, and these include countries which use:
- First In First Out (FIFO)
- Last In First Out (LIFO)
- Highest Cost
- Lowest Cost
- Average Cost Basis
- Shared Pool
In order to make sure that your country is supported by Koinly it’s best to contact the team and let them know of your specific requirements.
Tax Reports
In addition, Koinly also generates a range of localized tax reports for different countries including:
- Form 8949 and Schedule D
- Capital gains summary for UK
- K4
- Rf1159
- Swiss Valuation Report
- Sheet 9A
These localized reports are provided in addition to more standard reports such as:
- Complete Tax Reports – This contains includes your capital gains summary, margin gains, capital gain transactions, end of year balances, asset summary and income and can be downloaded as a PDF.
- Transaction Reports – This includes all your transactions and can be downloaded as a CSV.
- Capital Gains Reports – This is a CSV which contains all your disposals.
- Income Report – This is a CSV which contains all your income transactions including airdrops, forks, interest, and staking rewards.
- Gifts, Donations & Lost Asset Reports – This is a CSV which contains any transactions tagged as a Gift, Donation or Lost.
- Expense Reports – This CSV contains all transactions tagged as a Cost. However, this doesn’t include your trading fees which have already been accounted for in the capital gains report.
- End of Year Holdings Reports – This CSV contains your holdings at the end of the tax year.
- Turbotax Reports – This is a CSV that contains your transactions in a format that can be imported into the Turbotax tax software.
How to Get Started on Koinly
Signing up is pretty straightforward, and the main website displays a”Sign up” button at the top right of the page.
- You can sign up by using a Coinbase or Google account of by entering an email address and password combination.
- You can also choose to set your location for tax tracking or just opt to track your portfolio.
- From here you can access the main dashboard and add your exchange accounts and wallets.
- You can adjust your account as you like to include the correct tax reporting information for your jurisdiction from the “Settings” tab.
Koinly Exchange, Wallet, and Service Support
Koinly integrates with a wide range of popular crypto services and allows you to keep track of your activities on over 6,000 different blockchains, 350 exchanges, and 75 wallets.
As a result, the vast majority of leading crypto service providers are supported and Koinly also integrates with crypto lenders such as Nexo, BlockFi, and Compound.
You can also use the platform to keep track of you portfolios by linking your Blockfolio, Delta, and CoinTracking accounts.
Koinly also supports automatic import for 14 blockchains including Bitcoin, Ethereum, Litecoin, NEO, and EOS with over 6000 cryptocurrencies being supported via CSV import and manual entry.
Koinly Price Plans
The platform provides a range of plans designed to cater for crypto traders of differing activity levels.
- Koinly also has a Free plan that can be used extensively and allows anyone to track their trades/transactions, exchange and wallet accounts, and to also obtain a capital gains tax preview. The Free account also provides access to FIFO and LIFO tax reports and allows you to import data from a wide range of sources and contact the team via live chat and email.
- The Hodler account costs $49 per tax year and allows you to generate FIFO and LIFO tax reports as well as international tax reports, comprehensive audit reports, and Form 8949 and Schedule D reports. You can also export to TurboTax, and TaxACT, however, you are limited to 100 transactions.
- The Trader account costs $99 per tax year and provides access to a similar range of features and increases your transaction limit to 1000. When committing to this plan you also gain access to priority support.
- The Oracle account costs $179 per tax year for 3000 transactions and $279 for 10,000 transactions. The Oracle plan provides access to the full range of features available on Koinly. This includes access to priority support, and the ability to generate custom reports. This plan also gains extra assistance from the support team who will perform bulk actions and process custom files without manual charges.
The platform provides access to a comprehensive range of features and all plans currently include tax reports for the last five years of your crypto activity.
To get a better idea of all the options available, you can check out the team’s full price list here.
How Safe is Koinly?
The team prioritize customer trust and the safety of user data and employ a number of security protocols designed to guard against any exploits or breaches.
Most importantly, Koinly does not require your private keys or gain access to any funds held on your exchange accounts. However, as it connects with your accounts via API, it’s always a good idea to disable the ability to withdraw and trade when configuring your API connections.
All API/blockchain keys are encrypted using aes-256-gcm before being stored, and the website is completely served over https with all data sent to or from Koinly also being encrypted using 256 bit encryption.
Koinly also makes use of Amazon Web Services (AWS), and Heroku for data storage and hosting. AWS is an industry leader in providing secure hosting, and Heroku is a secure cloud application platform that isolates customer applications and data.
The platform applies security controls at every layer from physical to application, and applies security updates without any customer interaction or service interruption. This helps Koinly to have an uptime of 99.9% with any planned downtime being announced in advance.
Koinly allows user to sign up and authenticate via Google/Coinbase which does away with some of the need to store passwords, and anyone signing up via email has their passwords stored using bcrypt. The team also continuously scan for vulnerabilities and make sure to limit data access to only authorized employees.
In short, the platform incorporates a good number of industry standard security protocols and the team also elaborate on their security here. As ever, keeping your own personal data safe and remaining sensible with your info will also go a long way to protecting you from any data breaches.
Is Koinly Suitable for Beginners?
The platform is primarily aimed at people already actively engaged in various crypto related activities including trading, investing, mining, staking, and lending. As a result, Koinly may not be directed at people just starting their crypto journey.
However, the platform is useful for crypto enthusiasts of all experience levels and allows anyone entering the sector now to keep track of their activities from day one. It’s also worth noting that Koinly allows you to track your trades and transactions from the last five years which allows more experienced traders to go back and easily report what they have done.
The platform is quite comprehensive in its scope and links with all the leading exchanges, wallet providers, and blockchains. It also allows you to easily generate a range of reports including capital gains reports, income/transaction reports, end of year reports, and complete tax reports that many people are interested in creating.
The resource section helps to educate users, and the crypto tax guides are a handy way of keeping up to date with what’s happening in your jurisdiction. The localized tax reports also come in handy and error reconciliation features such as auto balance verification, and negative balance warnings help anyone not too familiar with doing their taxes.
More active crypto enthusiasts may have to look into the benefits of the Oracle plan which allows for custom reports, live chat support, and a high level of transactions to be tracked. These features combine to provide a more bespoke service that would suit high frequency traders while the free plan lets less active enthusiasts to easily keep track of all their accounts.
Conclusion
Koinly is a viable option for anyone in a supported region looking for a way to keep track of their crypto activities in order to file tax reports. The web based platform is relatively easy to use, and allows you to quickly link up your exchange accounts and wallet addresses and monitor your activities.
The platform integrates with a wide range of crypto service providers, and covers its core activities well. The service provided helps to streamline keeping track of all your transactions and take away the headache of staying on top of all your operations.
The service is quite well priced, although there is no option to pay in crypto, and the company is still developing having only been around since 2018.
However, the free account option allows anyone to sign up and test out the platform and gauge how accurately it helps you to monitor all your transactions.
All in all, Koinly provides a service aimed at an emerging crypto sector, and the ability to keep track of all your crypto activities will appeal to anyone looking to remain financially compliant and make sure that they can “cash out” or move between crypto and fiat with the minimum of headaches.
The post Koinly Review: Cryptocurrency Tax Software for Automatic Tax Reports appeared first on Blockonomi.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Eugene Kem, @Khareem Sudlow