If you have traded between cryptocurrencies ex. BTC → ETH or sold crypto then you need to declare that on your tax return.
But... calculating your crypto taxes is very time consuming if you have anything more than a handful of trades.
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...
Koinly can pull data automatically using your public addresses and exchange API keys or using CSV files.
Get a glimpse of your profit/loss for any tax year - for free!
Whether you are filing yourself, using a tax software like SimpleTax or working with an accountant. Koinly can generate the right tax documents for you.
"Great to finally see a solution that handles the Superficial Loss Rule - going to amend all previous years now!!"
"Auto sync worked great, would be nice if you could add it for Coinberry as well! Support is truly amazing, thanks!"
"Nice exchange support, had the ones I needed and it handles margin trades too - phew. Would recommend!"
Yes, the Canadian Revenue Agency (CRA) has issued official guidance stating that cryptocurrency is taxed as a capital gains asset which means you have to pay tax every time you trade, sell or use crypto to pay for goods/items.
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.
You have to use the Adjusted Cost Basis for calculating your crypto taxes. This means you average all your holdings to figure out the purchase price of sold assets. The Superficial Loss Rule also applies if you are selling assets bought within 30 days.
Koinly supports over 300 exchanges including Canadian exchanges like NDAX, Coinberry, Shakepay, Bitbuy and the now-defunct QuadrigaCX. Even margin trades and futures on Binance, Kraken & others are supported.
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!