Wealthsimple is a popular investment management service for Canadian investors, providing access to a range of opportunities like crypto, stocks and ETFs from a safe and regulated provider. Koinly and Wealthsimple work a little differently from other crypto exchanges as Wealthsimple & Koinly partnered to provide a bespoke tax filing service. Here's how it works.
Yes - Wealthsimple isn't just a crypto exchange. The platform also provides a self filing tax service and therefore reports to the CRA.
When it comes to crypto taxes, Koinly & Wealthsimple are partnered to make filing your crypto taxes as easy as possible - using a combination of Koinly's smart crypto tax software and Wealthsimple's awesome tax filing service. Here's how it works, step by step.
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.
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.
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.
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 "crypto trading".
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.
9. Fill out the section "if these properties were held jointly, your share" as it relates to you. You can find more information in our filing crypto taxes as a married couple Canada guide.
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.
6. Fill out "Your share", as it relates to your personal circumstances. Refer to our filing as a married couple guide if you need help.
Once you've submitted your crypto capital gains and income, there are a few bits left you need to do to complete your Wealthsimple crypto tax report...
1. Head to "Review & optimize". You can find this by scrolling down or in the left hand menu. Review your information to ensure it's correct.
2. Select submit.
3. You're done with your crypto taxes!
If you need help connecting Wealthsimple & Koinly, try these resources:
Sign up free today and calculate your Wealthsimple crypto taxes
Yes. Wealthsimple generates a range of tax documents depending on your investments and the filing service you're using. You can connect Koinly & Wealthsimple to generate a complete tax report (including crypto) and file with the CRA in no time at all.
Yes - if you have capital gains or income from investments on Wealthsimple, you're liable to pay tax on them - and you should, the CRA does not look kindly on tax evaders.
Yes. If you have investments on Wealthsimple - whether that's crypto, stocks or ETFs, you'll need tax documents to file with the CRA. Wealthsimple provides a tax filing service (alongside Koinly) to make this process simple!
The amount of tax you'll pay on Wealthsimple depends on your specific investments. You'll pay Income Tax (at your Federal and Provincial rate), on half of any gain, or the entirety of any income.
When it comes to crypto, you can use Koinly & Wealthsimple's tax filing service to file your crypto taxes in no time at all, just check out our video and instructions above.