·
Cryptocurrency Tax Software for Automatic Tax Reports
Here’s an extensive Koinly review that will allow you to determine whether it’s the right cryptocurrency tax software for your needs. We’ll especially focus on how it could save you time and money when producing your tax reports!
We have been investing in crypto for many years and therefore have a lot of experience when it comes to submitting crypto taxes. Having done many tax submissions in the past and also tested MANY different services, we can say with confidence that Koinly is one of the best crypto tax software platforms, if not the best crypto tax software, on the market right now.
In this review, we try to save you a lot of wasted testing and research time and get you straight to the information that matters. With so many tests and years of experience under our belt, you can trust us to provide the most important and reliable review possible.
Key Takeaways
- Expansive Support: Koinly is compatible with a vast array of crypto assets, blockchains, exchanges, and wallets, making it a versatile choice for diverse crypto portfolios.
- Smart Transaction Handling: Automatically imports transactions, groups small trades, and identifies duplicate or irrelevant transactions for accurate tax reporting.
- Robust Tax Reporting: With localized and generic tax reports, Koinly simplifies tax compliance across multiple countries while offering IRS-compliant forms in paid plans.
- User-Friendly Interface: The straightforward and intuitive platform design ensures a smooth user experience, even for those new to crypto tax software.
- Free Version Available: Users can start with a no-cost version to explore the functionalities before opting for a paid plan.
Best Koinly Promo Code 2024 – Unlock Your Exclusive Discount Today
Looking to save on Koinly? Use the exclusive Koinly promo code AD416FF7 to unlock a special discount on your subscription. Koinly is the go-to platform for crypto investors looking to simplify tax calculations and generate accurate reports in minutes. Don’t miss out on this limited-time offer to save on one of the best crypto tax tools available.
Click below to activate your discount and start saving today
Using the Koinly discount code AD416FF7 ensures you receive the best deal while benefiting from Koinly’s powerful tax solutions. Click the button above and take advantage of this offer today!
How Does it Work?
Koinly, one of the biggest crypto tax software platforms online, was created and established in 2018, with its main office situated in Palo Alto, California.
It allows for careful monitoring of your crypto activities while regularly generating various compliant crypto tax forms and reports in easy-to-understand PDF format.
Here is a short case study video about using Koinly to file your cryptocurrency taxes:
With your Koinly Account, you can integrate all your crypto wallets to help keep track of their activities, such as the following:
They support clients filing with authorities in over 100 countries globally including:
- The USA
- UK
- Canada
- Australia
- New Zealand
- Germany
- France
- South Africa
- … and many more.
If you’re in a country that uses any of Koinly’s supported cost-basis methods then they can assist you in calculating your crypto taxes and producing localized tax reports that follow your jurisdiction’s cryptocurrency tax law.
Koinly integrates with 350 exchanges, and 50 wallets and supports over 6,000 cryptocurrencies, including all tokens on the follow chians;
…and many more.
You can use Koinly to import all your transactions, accomplish wallet transfers, monitor current market prices, calculate your crypto gains and losses, and generate tax documents.
Additionally, this online tax platform is compatible with the following accountancy methods:
- Last In First Out
- First In First Out
- Highest and Lowest Cost
- Shared Pool
- Average Cost Basis
Claim Your $25 Coupon At Koinly HERE
Key Features
The most important part of this Koinly review is the key features.
Koinly crypto tax software can directly integrate over 6000 blockchains and deliver support to major cryptos, including Litecoin, Bitcoin, and Ethereum.
You can also connect your software-based cryptocurrency and hardware wallets like Trezor and Ledger devices to Koinly. Additionally, the integration of Koinly is also possible for more than 350 crypto exchanges, including Coinbase, Kraken, and Binance.
The following are the key features of this online digital tax management platform:
Multiple Country Support
Koinly supports tax tracking and tax reporting for more than 100 countries and tax authorities including the IRS, HMRC, CRA, ATO, and FMOF. Additionally, it also allows the generation of an international crypto tax report such as K4, Schedule D, Form 8949 schedule, Sheet 9A, and Rf1159 tax reports. Utilizing Koinly is your one-stop application software for your tax management with this diverse availability making it a reliable choice for US and international crypto investors.
Simple Data Import
Koinly allows easy connection with various services via import key data and API connections to import transactions. You can also expect optimum support for manual CSV files imports and imports in xPub, yPub, and zPub. Data migrations from BlockFi, Nexo, CoinTracking, and Deribit are also possible.
DeFi Support
Koinly supports DeFi data importing. The software has the ability to automatically import all trades and liquidity transactions from up to 20 protocols with imports complete in a matter of minutes. The available DeFi platforms include PancakeSwap, Uniswap, Sushiswap, Cream, Value, and many more.
Full-Scale Resources
Aside from the main use of this tax management platform, Koinly also contains other helpful resources, such as Regional Tax Guides, Tax Calculator, and a Tax Accountant List. Its website also contains several blogs about what it can offer, allowing beginners and even professionals to understand this crypto tax software better.
Reliable Customer Support
Koinly contains a reliable support section on its website and a FAQ page to address your common queries. Moreover, you can easily reach Koinly’s staff through live chat and email or contact them on their Twitter or Facebook page. Our experience is that response times are swift and questions are answered simply and comprehensively.
Free Account Set-up
An essential feature of Koinly crypto tax software is the option to set up a free account which you can use to track as many as 10,000 transactions. With a free Koinly account, you can import your data and preview your capital gains tax summary prior to purchasing a plan. You can then choose a plan which suits you best to produce localized tax reports.
Tax Loss Harvesting
Koinly’s Tax Loss Harvesting and Offsetting Capital Gains features are extremely helpful in reducing your tax bill. Koinly’s algorithms automatically identify profitable trades and calculate taxes on the capital gains/losses associated with each one. Koinly also provides suggestions on how to maximize savings by harvesting losses to offset capital gains and get the maximum benefit from rebalancing your portfolio.
Koinly’s capital gains tax offsetting feature allows you to select which assets you want to sell and Koinly will calculate the taxable implications of each sale. This feature is especially useful for those who trade frequently and have a large portfolio of cryptocurrencies.
Portfolio Tracking
When you create an account, you’re provided with a dashboard displaying your holdings, portfolio value, performance per holding, and a detailed list of your transactions. They also display an easy-to-read and understandable piechart that provides a breakdown of your assets and a summary of your crypto capital gain tax liabilities which you can view throughout the year so there’s no surprise when it comes to paying your taxes.
While Koinly’s dashboard is not as extensive as other portfolio trackers, such as Kubera, it will provide the details that the majority of crypto traders are seeking.
Smart Transfer Matching
Koinly’s Smart Transfer Matching feature is a great way to reconcile advanced crypto activities like margin trading, borrowing, and lending. Their powerful algorithms are able to compare all deposits, withdrawals, exchanges, and margin trades made across all supported services and match them in real-time. This helps you accurately calculate the taxable gains on these transactions. The process is automated and requires minimal effort from your side and is an excellent feature for those who engage in margin trading, borrowing, and/ or lending activities.
Fast Crypto Tax Reports
Koinly’s platform helps save you valuable time by reconciling your transactions, calculating your taxes, and producing relevant reports based on your location and currency in under 20 minutes.
What Tax Reports Are Available?
Aside from the localized reports mentioned earlier, there are also other standard reports available in Koinly, including the following:
1. Complete Crypto Tax Reports that include your capital and marginal gain transactions, yearly balances, income, an asset summary and can be downloaded as a PDF.
2. Transaction Report that displays all your crypto transactions, downloadable as CSV.
3. Report on your capital gain transactions with all your disposals, also downloadable as CSV.
4. An income report, another CSV file, containing all income transactions, such as forks, airdrops, staking rewards, and interest.
5. Donations, Gifts, and Lost Asset Reports that include any tagged transactions as Donation, Gift, or Lost, also downloadable as CSV.
6. Expense Report containing your capital gains summary and tagged transactions as Cost, but excluding your trading fees included in the capital gains summary.
7. End-of-Year Holding Report; an asset summary downloadable as CSV.
8. Turbotax Report containing all your transactions compatible with Turbotax filing software, downloadable as CSV.
Pros and Cons
Like any cryptocurrency tax software, Koinly contains advantages and disadvantages to consider in determining whether it’s the right application for you. Here is our Koinly review summary of the Pros and Cons:
Pros
In generating your IRS Form 8949, one of the best advantages of Koinly is its ability to include Schedule D in tax reports, unlike Taxbit and Accounting.
Additionally, unlike many of its competitors, they are pleased to accept payment via crypto. It currently accepts USDC, BTC, ETH, and DAI, in processing payments, as well as credit or debit cards.
Koinly also offers comprehensive cryptocurrency support, allowing you to track transactions for over 6,000 cryptocurrencies aside from popular ones like Ethereum, Dogecoin, and Bitcoin. Finally, they offer a share access feature, where you can establish your taxes team and invite your tax agency or accountant to access and utilize your account to generate and view your documents.
Cons
Koinly also contains a few limitations. For one, it cannot sync or track your NFTs automatically if you desire to add them manually. While it has a mobile application, iOS and Android apps are still in beta mode. With this, you still need a computer to access all the features of this platform.
How to Get Started?
Signing up and creating an account on Koinly is straightforward. All you need to do is input some basic information, and you’re good to go. One of the best things about Koinly is your freedom to choose between setting up your location for tracking your taxes or choosing only to track your portfolio.
Once you are on your dashboard, follow our simple step-by-step instruction guide below and generate complete tax reports in minutes.
Add Your Wallets
Koinly refers to all crypto exchange accounts, lending services, and wallets as “Wallets.” Simply head to the Wallets page and select “Add Wallet” to start creating one. When choosing one, you can easily search for your own wallets on the list provided on Koinly.
Should you not find your wallet, you can type in your wallet or exchange platform, and you will be directed to a page where you can customize one.
Import Your Data
After selecting a particular Wallet, you can choose your preferred method of importing your crypto transactions. Normally, you can find the “Setup Auto-sync” option using API keys that will automatically import your crypto transaction history. This option is usually recommended because it does not involve dealing with CSV files.
Update Gains and Review
After Koinly crypto tax software automatically imports your new transactions, it fetches all the market prices, matches transfers within your wallets, and calculates capital gains. An indicator is present on the platform while these processes are happening. After Koinly completes these tasks, you can review your wallet and transactions to check the data is accurate.
Review for Inaccurate or Duplicate Transactions
In the vast majority of cases when uploading via API, Koinly will do this without hitch but if there is any missing data including duplicate transactions or purchase history then Koinly flags these errors.
You can then manually check and correct the missing or duplicate transaction(s) ahead of producing your tax forms.
Download Tax Reports
You can generate reports and download them by heading to your Tax Reports page, where you will see all reports including a capital gains report and taxable income report for any year. Should you wish to download these reports and tax documents, scroll to the bottom of the page, where you can easily generate tax reports and download the file in CSV, PDF, or Excel formats.
One of the best things about Koinly is the indefinite number of times you can generate reports and download them. Moreover, you can readily revise your data and generate new reports anytime.
File Taxes
Whether you are filing taxes yourself, using crypto tax software, or working with an accountant or other professional, make it easier to do file taxes this tax season with Koinly.
Pricing
Koinly offers various plans for all crypto traders with different activity levels:
Free Plan
Koinly’s free plan is extensive enough to track a user’s trades, transactions, wallet, and exchange accounts while also allowing a preview of capital gains. When you get a free plan, you can also use their resources such as Regional Tax Guides, Tax Accountant List, and Crypto Tax Calculator, and contact the Koinly team. Once you’ve seen what the software can do you, can choose from one of the following accounts to suit your trading volume and reporting needs for when you need to download your documents.
Don’t forget to apply your Koinly Discount Code!
The Hodler Account
Priced at $49 per year, the Hodler plan allows the generation of LIFO and FIFO, international tax reports, Form 8949, Schedule D, and comprehensive audit reports. This plan also allows TurboTax export and TaxAct with up to 100 transactions.
The Trader Account
The Trader plan amounts to $99 per year and provides the same features as the Hodler plan but allows 1000 transaction limits. You are also guaranteed priority support with this plan.
The Oracle Account
The Oracle plan costs $179 yearly for 3000 transactions and $279 if your portfolio consists of up to 10,000 transactions. You also gain full access to all of Koinly’s features, including priority support and the ability to customize reports.
Additionally, you gain Koinly’s support team’s extra assistance, who can help you with the processing of custom files and bulk actions without additional manual charges.
Expert Review
Finally, you can upgrade your package to include a Koinly expert review. The price varies throughout the year depending on demand; expect it to be higher during US tax season especially. The review looks to confirm that the data you’ve uploaded is complete and there are no inaccuracies. This review could give confidence to those, particularly those who have not reported before, providing confidence that the capital gains calculation is as accurate as possible based on the imported data.
How does Koinly Promote Safety?
Koinly prioritizes user data safety and customer trust with security protocols that help protect and guard accounts against breaches and exploits. One of the most important safety features of Koinly is not requiring private keys or gaining access to funds on anyone’s exchange accounts.
Additionally, it’s best to disable the withdraw and trade abilities during your API connection configurations because Koinly can connect your accounts through API. Blockchain and API keys are encrypted with AES-256-GCM before storage. Moreover, it also enables 256-bit encryption with all data sent back and forth.
Koinly also utilizes Heroku and Amazon Web Services for data hosting and storage. Amazon Web Services is essential in securing hosting, while Heroku is a cloud application software that isolates customer data and applications for improved security.
Basically, Koinly contains multiple premium-standard security protocols, ensuring that your data is kept safe and protected against breaches and hacking techniques.
Alternatives To Koinly
Koinly is an affordable online crypto tax platform, and its free plan is a great way for users to test out its features before subscribing to a premium plan. However, there are also other cryptocurrency tax software options available other than Koinly.
TokenTax, TurboTax, ACCOINTING, ZenLedger, and Ledgible are also popular platforms that can contend with Koinly. Here’s a comparison table of some of the most popular crypto tax software providers and what they offer;
Crypto Tax SoftwareSupported ExchangesSupported CryptocurrenciesTax Forms GeneratedPricingCryptoTrader.Tax40+5,000+Form 8949, Schedule D, FBAR, FATCA, 1099-BStarts at $49 for 1,000 transactionsCoinTracking70+8,000+Form 8949, Schedule D, FBAR, FATCA, 1099-BStarts at €49 per yearTokenTax25+8,000+Form 8949, Schedule D, FBAR, FATCA, 1099-BStarts at $199 per yearKoinly350+6,000+Form 8949, Schedule D, FBAR, 1099-BStarts at $79 per yearZenLedger50+4,000+Form 8949, Schedule D, FBAR, FATCA, 1099-BStarts at $149 per year
For user-friendly, affordable software Koinly is an ideal choice. This tax management software also features more international support than ZenLedger.
Frequently Asked Questions (FAQs)
Can Koinly Work For Beginners?
Yes, Koinly is suitable for beginners in the cryptocurrency industry. It has an easy-to-use interface and detailed instructional videos and guides available in their help center. Although it is good for tax professionals too, it is also ideal for preparing complete tax reports for absolute beginners.
Who can use Koinly?
Koinly.io is an ideal platform for anyone, whether this is your first year calculating your cryptocurrency taxes or you’re a more experienced trader. If you’re a novice, Koinly contains crypto tax guides and localized tax options that can help you understand how taxes on cryptocurrency work and how to produce an accurate tax report.
Which cryptocurrencies does Koinly support?
Koinly integrates with more than 350 crypto exchanges, 50 wallets and supports over 6,000 cryptocurrencies. This includes all tokens on ETH, BSC, AVAX, Polygon, AVAX, FTM, ADA, and many more.
What’s considered a transaction on Koinly?
A transaction on Koinly refers to any trade, withdrawal, or deposit added to the software. One of the key features of Koinly includes grouping smaller crypto trades in a single transaction, resulting in fewer transactions done on Koinly than on other crypto tax software.
How do you work out your tax liabilities?
When crypto is taxed the rate at which you’ll pay tax varies per country.
When you set up an account with Koinly you will enter the country to which you pay tax in.
Koinly then identifies each taxable event, it then calculates taxes and provides tax documents for your locality and shows your tax and pay taxes due.
Is Koinly support good?
Koinly’s customer support is super responsive no matter which plans you purchase. You can contact Koinly for quick responding customer support 24/7 via live chat and email with any questions you might have. There’s also a team that accountants and tax professionals can contact for queries.
Is Koinly Free To Use?
Yes! There is a Compare the Top Free Crypto Tax Software in 2023″>free plan with Koinly and you can run the free account forever. This will give you a glimpse of your profit/loss for the year, accurately view your total holdings, track your portfolio across multiple wallets & exchanges and view your ROI all on one simple dashboard.
Koinly’s reliable cryptocurrency tax reports are not available in the free plan though, so you may need to pay a small subscription depending on your needs. Don’t forget to apply the Koinly Discount Code at checkout.
Is it safe to provide Koinly with an API key?
Rest assured, your read-only data provided via the API key is kept secure and encrypted at all times.
Is It Safe To Connect Koinly To Coinbase?
Yes, customer trust and safety are critical to Koinly. The company does not require any private keys or access to the funds on exchanges. Koinly and the exchanges you connect Koinly to, whether that be Coinbase, Binance, Kraken etc. will always recommend disabling any withdrawal/trading privileges when connecting API keys to other software.
Does Koinly report to IRS?
Koinly is aimed at helping you to prepare your taxes. You can submit your tax return directly to the IRS or equivalent for your jurisdiction.
Does Koinly work for NFTs?
NFTs are taxable in most countries so it’s important that these assets are recorded in Koinly.
Koinly is able to import NFTs for the majority of EVM-based blockchains including BSC, ETH, Cronos, FTM, AVAX, Poly etc.
Koinly API will import data for NFT transactions whenever you sell, purchase, mint or receive an NFT. As it currently stands NFTs are currently imported without any market value.
Koinly — Online Reviews
Consistently one of the highest-rated crypto taxes software providers on Trustpilot with a rating of 4.7 from 845 users at the time of writing this review.
It’s regularly praised and wholeheartedly recommended for its comprehensive support and easy-to-use platform and you’ll struggle to find negative Koinly Reviews.
Koinly is considered the best tax software by many users according to their online reviews. Having used the software for many years ourselves, we also agree that it does the job very nicely!
Useful Links:
Koinly Review: Final Word
Here’s the final word of our Koinly review: Koinly cryptocurrency tax software is a great option to track all your cryptocurrency activities.
They have free guides to help you understand cryptocurrency taxation and have a great support team that you can contact 24/7 via live chat and email to answer any questions you might have.
It’s easy to use, allows hassle-free linking of all your crypto accounts, has a Tax Loss Harvesting Tool aimed at saving you money, and has only minimal limitations easily outweighed by its advantages.
Save time and generate your Koinly Crypto Tax Reports In Under 20 Minutes.
