What you need to know about this crypto tax calculator


With the recent government crackdown on crypto users and changes to digital currency tax guidelines, having the right tools 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 all products are designed for you.

The solution? Turning to a product like Koinly can help you do your crypto taxes quickly and accurately. If you’ve heard of Koinly.io but need more information about the product before you try it, here’s 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 used). With the most common countries such as UK, US, and Canada listed on their website, users can easily find their country and file their taxes. If someone’s country is not listed on the website, users can contact Koinly for help!

What types of accounting methods are available?

Koinly currently supports tax returns for the first in, first out (FIFO), last in, first out (LIFO) and average cost methods. Due to the complexity of digital assets, the accounting method you use can be the difference between paying too much and saving a significant portion of your income.

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

What exchanges / wallets does it support?

Other tax calculators may make it difficult to extract relevant transactional information from other platforms and enter that information into the reporting software. Fortunately, Koinly simplifies this process by letting you sync information from exchanges and wallet providers.

With big names like Coinbase, Binance, and Kraken on the list of supported exchanges, you’ll be able to easily pull reports from your provider and upload them to Koinly to provide you with a complete overview of your annual trades and what you owe. for the year. Their tax calculator supports over 300 exchanges, over 10 blockchains, and over 6,000 cryptocurrencies.

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

What kind of reports does it generate?

While capital gains and losses are one of the main areas of interest while doing your taxes, you’ll need to make sure that you cover all of your bases if you want to avoid an audit. Acting as your digital cryptocurrency accountant, Koinly does just that!

Besides analyzing your capital gains, Koinly also generates reports on income and gifts (as well as lost or stolen tokens and assets), provides you with audit logs so you have all the information you need. if you 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 United States, Koinly can even generate the mandatory Form 8949 and Schedule D for you. Swedish customers can download their K4 while Norwegians get an Rf1159. Koinly also supports tax returns for many other countries.

Koinly review

Beyond these reports, you can also better understand where you can claim losses so you don’t have to pay additional taxes, and learn how transactions can impact your taxes before you decide to make them.

How to start

Whether you have owned and sold a small amount of crypto in the past year or are a regular trader, having an accurate tax report is essential for your financial well-being. While 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 find out what you owe, find out where you might benefit from alternative accounting methods, and understand the impact of your transactions on what you’ll pay more. late.

When you choose to use Koinly over other tax calculators, you make it easier to find out what you owe, find out where you might benefit from alternative accounting methods, and understand the impact of your transactions on what you’ll pay more. late.

Conclusion

As the next tax season approaches, it may be a good idea to invest some time in trying out a crypto tax calculator like Koinly. While there are others such as Cointracking and Bitcoin Taxes, Koinly certainly has the edge in terms of design and integration.


Esther L. Steinbach

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