Are you using Wealthsimple for your Canada crypto taxes? Have no idea where to begin? Don't panic, here's our step-by-step guide on how to file your crypto taxes with Wealthsimple and Koinly for 2022.
How to do your Wealthsimple crypto taxes with Koinly
Short on time? Watch our complete Wealthsimple crypto tax video below or follow our step-by-step guide underneath.
First up - you're going to need a Koinly account and a Wealthsimple account. You'll need to do a couple of steps first to get them all set up and ready to file your crypto taxes with the CRA.
1. Sign up and set up your Koinly account by syncing all the crypto exchanges, wallets and blockchains you use and checking your settings in Koinly are correct for Canada.
2. If you're filing manually with Wealthsimple, head to the tax reports page and download the Wealthsimple Report from Koinly.
1. Log in to your Wealthsimple account and head to the tax section in the top left corner.
2. From the top navigation on the left, select "create a new return".
3. Name your tax return, like your first name or nickname.
4. Fill out your personal information.
You have two options for filing your Wealthsimple taxes, the auto option (auto-fill your return) or the manual option (find income tax forms, deductions, and credits).
You'll also need to report your crypto income separately from your capital gains. We'll look at each option in turn.
If you’re not sure what counts as income and what counts as a capital gain - check out our Canada crypto tax guide.
How to automatically report your crypto capital gains in Wealthsimple
1. In Wealthsimple, under "Build your return", select “import gains and losses”.
2. On the pop up screen that says "import your crypto tax information from other exchanges or wallets", select “continue”.
3. On the next page, click the link to sign into your Koinly account and sign in. This will open a new window to take you back to Koinly.
4. Once you're back in Koinly, go to the tax reports page and select the Wealthsimple Report from the report options at the bottom of the page. To do this, click the blue button labelled 'Download Report'.
5. It is only once you've clicked 'Download Report' that you will see the option to click the yellow button labelled: 'add to Wealthsimple tax return'.
6. On the page that says, "your crypto tax information has been imported", select "close this window".
7. Under the "Build your return" section, you should now see an updated page that includes your most recently imported crypto from other exchanges. For example, "crypto with other exchanges last imported: 2022-03-04".
8. Report any other gains or losses from capital assets as relates to your personal circumstances.
How to manually report your crypto capital gains in Wealthsimple
1. On Wealthsimple, under the "Build your return" section, go to the "find income tax forms, deductions and credits" and search "capital".
2. Select “Capital Gains (or Losses)”.
3. In the new form, take the information from your Koinly Wealthsimple Report (Capital Gains Summary) and copy and paste it into Wealthsimple as follows.
4. In the drop down box under "type", select "cryptocurrency".
5. For “description”, enter a relevant description, for example "cryptotrading".
6. For "Proceeds", go to the Capital Gains Summary in your Koinly Wealthsimple Report and copy and paste the figure next to "Proceeds from Sales".
7. For "ACB", go to the Capital Gains Summary in your Koinly Wealthsimple Report and copy and paste the figure next to "Acquisition Costs".
8. For "Outlays", go to the Expenses section in your Koinly Wealthsimple Report and copy and paste the total figure. These expenses are not costs included in your cost basis.
1. On Wealthsimple, under the "Build your return" section, go to the "find income tax forms, deductions and credits" and search "investment".
2. Under the new box titled "other investment income", take the information from your Koinly Wealthsimple Report and copy and paste it into Wealthsimple as follows.
3. In the drop down box under "type", select "other investment income".
4. For "Description", enter a description of your income, for example "crypto income" or "crypto mining" as it relates to your investments. You don't need to separate out each type of income, but you can if you want to.
5. For "Total amount", go to the Income Summary in your Koinly Wealthsimple Report and copy and paste the total figure.