Koinly is a cryptocurrency-specific tax reporting program that can assist you in determining your taxable income and identifying potential tax deductions and credits. Every month, new cryptocurrency rules and regulations are being introduced. So, it’s crucial to ensure you have some backup when meeting your crypto tax duties.
Koinly is a piece of software that can create a full tax report for your crypto holdings in just 20 minutes, and it can do so for customers in over 20 different countries. Users can input their exchange trades to do fully automated tax computations; capital gains taxes can be computed at any time throughout the fiscal year.
Continue reading this Koinly review to learn more about how it works!
Koinly does not offer many specialized options that appeal to a narrow subset of the crypto community. Instead, Koinly has concentrated on making its platform accessible to as many people as possible who utilize bitcoin and other cryptocurrencies.
Koinly serves customers in over 20 countries; however, it is headquartered in California. Countless nations worldwide are on the list of those who can use it, including those in Europe, Asia, and the Americas.
Koinly has complete support for cryptocurrency exchanges and wallets and vast support for diverse countries. Additionally, it now works with over 6,000 distinct digital currencies. Koinly also supports automated transaction history import from more than 350 bitcoin exchanges.
Using a cryptocurrency portfolio tracker like Blockfolio, Koinly can import your data directly from that app, making it even simpler to calculate your tax liability.
Methods for Creating a Koinly Account
With Koinly, you can get started in a matter of minutes. To sign up for Koinly, visit the site and click the “Sign Up” button in the upper right corner of the screen.
After that, an enrollment form will appear for you to fill out. Notably, if you already have an account with Coinbase or Google, you may skip most of the signup steps. If you prefer, you can always use the tried-and-true method of signing up using an email address.
After getting through that introductory screen, you’ll be able to enter more specific information about your location and the currency you’d like the app to default to. The more information you provide, the more Koinly can automate the process of filing taxes on your cryptocurrency holdings.
Benefits and Drawbacks of Koinly
You should consider the pros and cons of using Koinly just like any other piece of software.
Here’s a short video about Koinly software
One of Koinly’s biggest features is that, unlike Taxbit and Accounting, it includes Schedule D in tax reports, which is essential for creating your IRS Form 8949. This comprehensive tax management system also accepts cryptocurrency payments, setting it apart from the competition.
Koinly accepts various payment methods, including cryptocurrency exchanges like USDC, BTC, ETH, and DAI, and traditional methods like credit cards and debit cards.
Generally, Koinly provides full cryptocurrency support, letting you monitor transactions for over 6,000 coins, including Bitcoin, Dogecoin, and Ethereum. Koinly also has a share access option that allows you to set up a tax team and give your tax agent or accountant access to your Koinly account.
There are a few restrictions in Koinly as well. To begin with, if you choose to add your NFTs manually, Koinly will not sync them or keep track of them automatically. There is a mobile app. However, the Koinly applications for iOS and Android are not quite ready for prime time yet. To use this tax management system to its full potential, you will need access to a computer.
Last but not least, Koinly cannot produce alternative cryptocurrency tax documentation. For example, if you lend crypto or run a business, you’ll need to manually fill out IRS tax documents like Schedule 1 and Schedule C.…Read More