Koinly is a beginner friendly crypto tax calculator that makes it easier to file your crypto taxes. Just import your trading history and Koinly does the rest. It will calculate your capital gains, profit/loss, and much more so you can download the papers you need to file your taxes or send to your accountant.
I used Koinly for my 2020 taxes so I decided to make this review and tutorial to hopefully answer some of your questions.
The Bottom Line: Koinly integrates with 350 exchanges, including the Canadian ones, and is compliant with the CRA's guidelines. This is a great tool for Canadians who want to simplify their crypto taxes, especially if you have lots of wallets and transactions to track.
Koinly Pros & Cons
How Koinly Works:
- Import your transaction history
- Check your transactions for accuracy
- Download your tax report(s)
1. Import Your Transaction History
Step one is to import your transaction history from exchanges and private wallets. There are multiple ways to do this. You can download a .csv file from your exchanges, add your public address for your cryptos, or connect your exchanges via API to automatically sync everything.
Koinly supports hundreds of exchanges and wallets. This includes the popular ones in Canada like Shakepay, Newton, NDAX, Ledger, Trezor, and much more.
Import every wallet and exchange you've used to get accurate reports. If you miss one, the numbers could be wrong.
2. Review Your Transactions
As you upload your transactions, it will start looking something like this. Koinly will tell you if it's found errors, duplicates, and so on. Double check it for accuracy. Your Koinly dashboard will also start displaying your profit/loss and your total crypto holdings. Make sure your crypto holdings in Koinly matches your real portfolio. If it doesn't, there might be a wallet or exchange you forgot to import.
3. Download Your Tax Report
Once the numbers look correct you can finally download your final reports. Koinly gives you tons of downloadable reports which are helpful for taxes as well as seeing how your investments performed. There's also lots of options in settings if you need more advanced features.
Where Koinly Shines:
Where Koinly Falls Short:
Is Koinly Right For You?
Koinly is not the cheapest crypto tax calculator, but it follows the CRA's guidelines and has a great, beginner-friendly user experience. It also saved me the headache of doing it myself or getting an expensive bill from an accountant.
If you have 1-20 crypto transactions, it can probably be calculated manually. If you have 20+ transactions, a crypto tax calculator is highly recommended. If you have hundreds or thousands of transactions, you will definitely need something like this to save hours or days of frustration.
- Make your crypto taxes easier
- Compliant with CRA's guidelines