Cryptocurrencies are taxed in almost every country. Whether you exchange Ether for BTC, sell BTC for fiat or stake some Tezos - the Taxman wants a cut.
But... calculating your crypto taxes by hand is very time consuming - not to mention difficult!
Say you bought 1 Bitcoin on Coinbase and transferred it to Binance where you sold it in several transactions. How long would it take you to calculate your gains?
Well, it took our accountant 45 minutes - for 10 trades!! Now imagine if you have a lot more trades, like Mr. Dunkers perhaps...
Add your exchange accounts via API or CSV files and connect your blockchain wallets using public addresses.
Get a glimse of your profit/loss for any tax year - for free!
Whether you are filing yourself, using a tax software like TurboTax or working with an accountant. Koinly can generate the right crypto tax reports for you.
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"It was easy to sync my accounts, the tax report was in good format and approved by BZSt. Great support."
"Team is very supportive, helped me import my Bibox transactions and guided me all the way. I have invited some of my friends to Koinly too and they are thanking me :D"
Pay only when you are ready to download reports
Crypto is taxed in the same way as Gold and real estate. When you sell or trade crypto you have to pay tax on the difference between the selling price and the price you bought it for (minus any exchange fees). This is known as a Capital Gains Tax and has to be paid in most countries such as the USA, UK, Canada etc.
Yes. It doesn't matter if you only made losses, you still have to report it to your tax agency. In fact, it is in your best interests to report your losses as this is one of the best ways to reduce your crypto taxes in the future!
Yes. Any exchange of cryptocurrencies is also a taxable event. For ex. if you exchange Bitcoin for Ripple, the IRS and other tax agencies will treat this as a sale of Bitcoin at the market price of the XRP you received.
The same way as regular income. For ex. if you receive 10 BCH as a result of the Bitcoin Cash fork then you will need to declare this as additional income, using the fair market value of the BCH at the time you received it.
It's actually very difficult to avoid crypto taxes. Every time you transfer funds to an exchange you are leaving a papertrail that tax agencies can catch on to. In the past, exchanges like Coinbase and eToro have handed over data on thousands of users to tax authorities.
No, you don't. As long as you own both wallets there's no tax to pay on transfers. However, you still have to keep track of the original cost of the transferred coins and have sufficient proof of it.
Koinly automatically imports your transactions, finds all the market prices at the time of your trades, matches transfers between your own wallets, calculates your crypto gains/losses and generates your tax reports!