By: Alex Dabek

Last Updated: Jul 3, 2021

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4.7

NowFuture Rating:

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.

Koinly Canada Overview

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

Koinly Pros & Cons

  • Compliant with CRA's guidelines
  • Integrates with every Canadian exchange and wallet
  • Can automatically track previous 6+ years and future years
  • Good user interface - easy to use and provides helpful info when you get stuck
  • Can track everything - purchases, transfers, mining, staking, lending, etc 
  • It's not 100% automated - There were errors on some of my transactions. Some troubleshooting and double checking is required
  • Their website says "20 minutes" but it will likely take longer, especially if you have lots of transactions. It took me 2-3 hours for 106 transactions

How Koinly Works:

  1. Import your transaction history
  2. Check your transactions for accuracy
  3. Download your tax report(s)

1. Import Your Transaction History

Koinly Add Wallets and Exchanges

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.

Quick Tip

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

Review Your Koinly 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

Choose From Multiple Tax Reports

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:

  • Made for Canadians: Koinly is compliant with CRA's guidelines so you can get the correct data and reports to help with your tax returns. It also has every Canadian exchange I researched like NDAX, Shakepay, Newton, and many more.
  • Save Time/Money - If you have multiple wallets, multiple exchanges, and altcoin purchases, things start to get complicated fast because you have to track every wallet transfer, purchase, sale, etc. This is how even casual crypto investors can end up with 100+ transactions to sort through. Instead of searching through a maze of transactions or paying an expensive accountant, Koinly does everything using software.
  • Informational Resources - The platform is designed extremely well and if you get stuck or have questions, Koinly has helpful guides every step of the way. Their blog is also very helpful. For example, they have a detailed Crypto Tax Guide for Canadians here.
  • Overview of Your Investments - Other than taxes, you get a beautiful and extremely detailed overview of how your crypto investments have performed. The user-interface and information you get on Koinly surprised me. You can download reports, look at charts, and view lots of advanced data about how you performed as an investor.

Where Koinly Falls Short:

  • Not 100% Automated - It would be nice to upload your transactions and download your tax report, but of course taxes are never that simple. Koinly is immensely helpful but some of my transactions had errors and needed a second look. You also have to keep an eye out for accuracy and make sure the numbers add up in the end.
  • Takes More Than 20 Minutes - Koinly's website advertises "Crypto Tax Reports in Under 20 Minutes" which is unrealistic unless you only have a few transactions. I had 106 transactions and it took me 2-3 hours to upload my transaction history, double-check the info, and fix errors that Koinly found. Don't get me wrong, it would have taken way longer without Koinly but "under 20 minutes" is unrealistic.

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.

Koinly
  • Make your crypto taxes easier
  • Compliant with CRA's guidelines
  • Beginner-friendly
Newton Exchange
  • Trade 20+ cryptocurrencies
  • Fast funding and super low fees
  • $25 free when you trade $100

FAQs:

Can You Do Your Crypto Taxes Manually?

If you don't have a lot of transactions, yes you could but it's very time consuming. If you have 100's or 1000's of transactions it's almost impossible.

With crypto, you need to track every wallet transfer, purchase, sale, withdrawal, airdrop, reward, etc. This is why it gets complicated quickly because you'll be searching though a maze of transactions. A software like Koinly solves this problem.

Is Koinly Legit and Safe?

Yes, Koinly is safe and they also do not require your private keys. If anything happens, they are not able to trade or withdraw your funds.

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