Almost everyone has an opinion on tax, don’t they? Well, no matter what you think of it, you have to agree that it is kind of unavoidable. Unless you plan on shifting to places like the Bahamas, Bermuda, Andorra, UAE or Monaco where there aren’t any such provisions for tax, every April you need to face the inevitable and extremely complex tax procedures. No matter how much you plan, there is no evading it. But that doesn’t mean you will have to spend sleepless nights trying to get the numbers right on your tax papers. With some planning, you can make things much easier for you and bid adieu to all the last moment hassles, expenses and the never-ending legwork & paperwork.
Overview of Koinly
Koinly ever since it was launched in 2018 has been growing fast and making its presence felt all over the world with its smart crypto tax solutions. Along with tax solutions, this one also offers automated reporting features for capital gains in more than 20 countries worldwide. The system is based on the simple purpose of providing crypto owners with a trustworthy solution for all their taxation requirements to minimize the related expenses. In case you were wondering, Koinly has been designed in such a way that it has compatibility with more than 100 country’s tax systems.
For all those who are concerned about the costing for filing crypto taxes, Koinly is entirely free for initial usage. You need to pay charges only when you are generating tax reports. Once you sign up you need to specify if you want it to realize the gains with every crypto you trade. If selected No, the system will serve simply as a portfolio tracker. The system also requires the user to link the wallets with the exchange accounts, either manually or through the API. Almost 33 exchanges and numerous blockchains including LTC, BTC, BCH are supported. So after linking the wallet & exchange accounts, you can easily review any transaction, forks, tag airdrops, and even the gifted/lost coins.
Koinly instantly matches the transfers between wallets, displaying the gains/losses for every transaction. You will also get tools that will assist you in analyzing tax-loss harvesting, trading habits, and also cost tracking which includes the mining expenses.
Taking A Look At The Plans
Well, Hodler plan, which costs around $79 annually, offers 300 transactions and will record both the capital & income gains tax. The Trader plan costing $179 offers 3,000 transactions, while the Oracle, costing $399 offers almost 10,000 transactions along with massive support & import assistance.
Koinly- an integrated crypto tax software, is mostly used by Startups, Agencies, SMEs, enterprises and even the Freelancers. You can expect it to support multiple devices like android &IOS and also various operating systems which include Macintosh, Web App, and Windows.
Koinly’s Core Features:
Auto Imports
Sync all data in a secure and seamless way by connecting your blockchain public addresses with the exchange API keys.
Tax Reports
Get complete audit logs, generate reliable tax reports, and minimize the taxable gains.
Portfolio Tracking
Analyze the trades, view the total value of the coins, explore all the transactions on a single platform to gain more valuable insights into the trades.
Expert Guidance
Koinly also brings you free tax guides that will assist you with filing crypto taxes and keep you compliant with all the prevailing laws.
Pros:
- Free and easy portfolio tracking along with a feature-rich, user-friendly dashboard
- More insight into your tax dues along with expert recommendations on tax-saving strategies.
- Block explorer integration available for multiple blockchains.
- Get access to complete tax reports that are ready-to-file, which include Schedule D & Form 8949.
- Impressive support for live chat to assist you with even the minor issues at all times.
Cons:
- Lacks few resources including Video Guide, Whitepaper and also Case Studies.
- Absence of an open API and strictly Cloud-only platform.
How it Works?
Koinly is extremely easy to install and setup. Not just this, you also get an API integration for all the popular exchanges including Bittrex, Binance, and Coinbase; which eliminates the need for any manual data input. Your EOS, BTC xpub key, XRP addresses or even COSMOS can be synced seamlessly. Also, an advanced error detection feature warns you whenever there are missing transactions and even minor errors that could affect the accuracy of your tax report.
The final verdict
Last but not least, you must know that tracking your Crypto portfolio isn’t chargeable in Koinly and the tax reports are the only chargeable features. Integration is available with almost 33 exchanges and a wide range of crypto assets under packages that range from 79$ – 399$ annually offering a varying amount of transactions.
Koinly brings you reliable tax planning tools that ease the process while reducing your taxation liabilities. It even manages your incomes from multiple platforms including DeFi, Staking, & Masternodes offering you an insight into the crucial market data regarding countless crypto assets. So it is safe to say that Koinly is not a mere tax reporting system. There are limitless ways you can utilize its features and make things much easier and more accessible for you!
