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We know it, once a year the tax returns are due again and you have to laboriously collect all the documents, receipts, and other documents to insert the correct deductions and values in the right place in the declaration. Oh, we love this time, one ägert itself green and blue there one at the end of the data already a sour premonition about the resulting tax bill receives.
Of course, we can only report on the tax situation in my country and cannot cry for all of them. Although taxes also have something good in themselves and serve the well-being of society of a country, if then used correctly, no it is no fun to pay taxes, and even less attractive is when you get involved with crypto assets of various kinds. Depending on the case, this new and young discipline can be really nerve-wracking and time-consuming.
Since regulations and laws lag behind the crypto space, it is relatively difficult to get the right information about the certification and declaration of such values and some people are tempted not to declare them in order to save time, effort, and money. However, it should be noted that such an omission will sooner or later take its revenge because the regulations will come and one will then also come via the tax route to control mechanisms to uncover such tax sins.
The following article will not deal with possible forms of tax evasion but will show the comfortable way via koinly.io, a tool that can be consulted for reliable tax reports and much more. This is done comfortably via an API connection to the Exchange. But more below.
What is koinly.io?
Koinly.io was designed by crypto enthusiasts whose personal need for a tool that generates reliable tax reports possible reliably and thus facilitates and automates the declaration of taxes for cryptocurrencies.
Before we get into the details of koinly.io, I would like to mention that this post does not compare it to other similar tools. This is because I have been delighted with koinly.io for years and the choice was made very easy for me.
At that time, no other tool generated a tax report for Switzerland.
Whether this is still the case today I can not say, but I see no reason to focus on other products because of my satisfaction.
Therefore, the reader is well advised to always get his own idea of what is needed and make critical comparisons with other products. He should forgive us at this point for not finding this here. But we are simply fans of this tool, and can only recommend it, because of course we have been using it ourselves for years, and…. if after reading this article you decide to use koinly.io as a future tool, we would be happy if you buy the license directly from the product’s website via the koinly.io links used in the post. This way, we earn a small affiliate commission that contributes to the upkeep of our blog without you having to pay more. So, now enough written on this topic, and let’s go…..
Features of koinly.io
The vision behind Koinly is to make it easier to track, analyze and generate reports from your cryptocurrency. All this without ever touching your private keys or other sensitive data.
- Koinly.io is a web application and is simply an automated cryptocurrency tracker and tax calculator.
- The different exchange accounts and wallet addresses can be connected via API. Through the API connection, these states and movements can be synchronized automatically. Additionally, CSV files can be imported.
- When holding coins in wallets/accounts at multiple exchanges, it can happen from time to time that coins are transferred from one exchange to another. The difficulties that usually arise with portfolio trackers are 2 separate transactions. Koinly.io shows one single transaction which clearly proves that it is a transfer within the own wallets and accounts.
- Koinly.io can combine multiple trades within the same order into a single transaction. Traders know the fact that one order at the exchange usually has to be divided or subdivided into several small single orders because you don’t always get the execution in one go. However, in order to track the portfolio it is better to have 1 transaction for the executed order. Koinly.io offers this feature for a better overview.
- In order to have a realistic view of profits, the costs in the tracker must be taken into account. Koinly can handle fees in any currency.
- The tool provides an overview of the original acquisition costs when exchanging cryptocurrencies.
- koinly.io allows switching between an investment and a tax mode. In investment mode, profits should only be calculated when selling a crypto asset (trades between two cryptos should not be included in profits). In tax mode, profits should also be calculated when exchanging one currency for another.
- Clearly shows how a profit/loss was calculated for each transaction.
- Support generating gains using various accounting methods like Average Cost Basis (ACB), First In First Out (FIFO), Share Pool (UK) etc. Generate income, profit & loss as well as tax reports.
About Synching and Integrations
There can be the integration of over 398 exchanges and 30 wallets through API in koinly.io. This includes the big exchanges like Binance and Coinbase as well as the smaller unknown ones and wallets like Exodus, Trezor, and Ledger.
Koinly.io offers the integration of over 6000 cryptocurrencies which can either be integrated via the exchange/wallet API or alternatively an import via CSV files is available.
The data of more than 30 services can also be retrieved either directly via API or transferred to koinly.io via a manual import of a CSV file.
These services include well-known names such as Cake DeFi, Celsius Network, Mining Rig Rentals, Nexo, and BlockFi.
Blog and Tax Guide
Before we dive into dos How to I would like to draw your attention to the blog and the Tax Guides on the website.
Under Guide & Tutorials in the blog section of koinly.io, the guides to the countries supported by koinly.io and their tax return modalities are listed and explained in detail.
In Switzerland, we are still somewhat spoiled with the declaration and taxation, but koinly.io is an incredible relief for all crypto holders. In other countries, the declaration is even more complicated, which makes the support of koinly.io all the more attractive.
Tax advisors and accountants will also find useful guides on how to use koinly.io.
Koinly.io Pricing Plans
If you have only one or two cryptocurrencies in your portfolio and only a few transactions per year, you don’t need koinly.io, although the tracking portfolio function is interesting and available for free.
However, as soon as you have several currencies and transactions per year, additionally trade NFTs and do some staking, etc., then one of the following price plans is worth considering.
Koinly offers a simple pricing model which is offered in 4 different plans. Payment periodicity is annual.
The difference between the plans is a few features that are related to the volume or activated/not activated. These are in particular described below. If you want to have more detailed information about features and pricing plans click on the button “Read more on koinly.io”, you will be redirected directly to koinly’s pricing website.
- Free (Essential features) $0
Transactions 10'000; Tax Reports, Cost Analysis, Custom File Import, and Email Support are NOT included.
- Newbie (Just getting started) $49
Transactions 100; Tax Reports, Cost Analysis, Custom File Import. Email Support is NOT included.
- Hodler (Taking it easy) $99
Transactions 1000; Tax Reports, Cost Analysis, Custom File Import. Email Support is NOT included.
- Trader (Hustling like a Pro) $179
Transactions 3'000 or 10'000+; Tax Reports, Cost Analysis, Custom File Import, and Email Support.
- PRO (Hustling like a Pro) $279
Transactions 10'000+; Tax Reports, Cost Analysis, Custom File Import, and Email Support.
In this first part, we have introduced the tool and its features. The various integration options and tax report options round off the offer in addition to efficient portfolio tracking and cost analysis. The price model that koinly follows is simple and clearly designed. It is worth mentioning that besides the payment method of credit card, cryptocurrencies are also accepted. Additional services such as daily automated reconciliation, tax reports for additional countries, or even expert reviews can be booked separately.
In the following second part we will go into the details of setting up, matching and generating reports. So stay tuned….
Source by Dindu
