Koinly is an online cryptographic tax platform that allows you to monitor all your crypto activities and generate regulatory compliant tax reports. Koinly allows you to integrate your portfolios and track assets including trading, mining, staking, lending and airdrop and simplifies the process of recording all the details.
Koinly can be used to automatically import transactions and monitors all market prices, portfolio transfers, calculates crypto gains/losses and generates tax reports.
The platform is available in over 20 countries and integrates over 6,000 blockchains, 350 exchanges and 75 wallets and provides a comprehensive cryptographic tax reporting service. The platform can be used for free with paid plans ranging from $49 to $279 per fiscal year.
Table of Contents:
overview
Koinly was founded in 2018 by Robin Singh and the company maintains sales offices in the UK, US, Sweden and Germany. The company operates from maintaining a presence in Palo Alto, California 95124, and adheres to the laws of the State of California.
You can find more information about the company by checking their LinkedIn profile.
The platform is available in over 20 countries including the US, UK, Canada, Australia and New Zealand and allows you to import data via API, CSV files or x/y/zpub keys and generate reports that can be downloaded as pdf files.
These include First In First Out (FIFO) and Last In First Out (LIFO) reports, Form 8949, Schedule D reports, and international tax reports, and Koinly provides a comprehensive online cryptographic tax review service that also allows users to connect with qualified tax accountants in their region.
Main features of Koinly
Some of the main features of the platform include:
- Multi-country support – The platform is available to people in over 20 countries in Europe, Asia, Oceania and the Americas. Koinly also allows users to generate form 8949 and Schedule D, K4, Rf1159, and Sheet 9A localized tax reports.
- Extensive service integration – Koinly integrates with over 6,000 blockchains and supports automatic imports for Bitcoin, Ethereum, Litecoin, and NEO. It also integrates with 350 exchanges including Binance, Coinbase, Kraken, portfolio apps like Blockfolio and Delta, and 75 wallets, and allows you to easily track mining, staking, and various DeFi assets.
- Easy data import – Koinly allows you to connect with a variety of services via API and import key data. Manual imports of CSV files are also supported, as well as xPub/yPub/zPub imports and data migrations from Nexo, BlockFi, Bitmex, Deribit, and CoinTracking.
- Free Account Option – The platform can be used for free to track up to 10,000 transactions and generate capital gains tax previews. The free account can be used indefinitely to keep track of all your crypto operations and activities.
- Comprehensive Resources – Koinly provides a handy list of resources such as a crypto tax calculator, regional tax guides, a list of tax accountants, and a blog to keep its users up to date.
- Customer Support: The team provides a Support section and FAQ page that aims to answer the most common questions. They can also be reached via email and live chat and manage a Facebook page and Twitter account.
For which countries does Koinly calculate taxes?
Koinly supports tax monitoring and reporting for most countries, with the following countries all supported.
- Americas – USA, Canada
- Europe – United Kingdom, Germany, Sweden, Denmark, Finland, Norway, Netherlands, France, Spain, Italy, Austria, Liechtenstein, Ireland, Czech Republic, Estonia, Malta
- Asia – Japan, South Korea, Singapore
- Oceania – Australia, New Zealand
The team also says that a much wider range of countries using a range of accounting methods is supported, including countries that use:
- First in first out (FIFO)
- Last In First Out (LIFO)
- Higher cost
- Lowest cost
- Average cost base
- Shared pool
To make sure your country is supported by Koinly, it’s best to contact the team and let them know about your specific needs.
Tax reports
In addition, Koinly also generates a number of localized tax reports for different countries, including:
- Form 8949 and Annex D
- Summary of capital gains for the United Kingdom
- K4
- RF1159
- Swiss Evaluation Report
- Sheet 9A
These localized reports are provided in addition to more standard reports such as:
- Comprehensive Tax Reports – This includes the summary of capital gains, capital gains, capital gain transactions, year-end balances, asset summary and income and can be downloaded as a PDF.
- Transaction Reports: Includes all transactions and can be downloaded as CSV.
- Capital Gains Reports – This is a CSV that contains all your divestitures.
- Income Report – This is a CSV that contains all your income transactions including airdrops, forks, interest, and wagering rewards.
- Gifts, Donations, and Lost Goods Reports – This is a CSV that contains all transactions marked as gift, donation, or loss.
- Expense Reports: This CSV contains all transactions marked as cost. However, this does not include trading fees that have already been accounted for in the capital gains report.
- Year-end holding reports: This CSV contains your holdings at the end of the fiscal year.
- Turbotaxer Reports – This is a CSV that contains your transactions in a format that can be imported into the Turbotax tax software.
How to get started on Koinly
Registration is pretty simple, and the main website displays a “Sign Up” button at the top right of the page.
- You can sign up using a Coinbase or Google account by entering a combination of email address and password.
- You can also choose to set your location for tax monitoring or simply choose to track your portfolio.
- From here you can access the main dashboard and add your exchange accounts and wallets.
- You can edit your account as you like to include the correct tax return information for your jurisdiction from the “Settings” tab.
Koinly Exchange, Wallet and Service Support
Koinly integrates with a wide range of popular crypto services and allows you to track your activities on over 6,000 different blockchains, 350 exchanges, and 75 wallets.
As a result, the vast majority of major crypto service providers are supported, and Koinly also integrates with crypto lenders such as Nexo, BlockFi, and Compound.
You can also use the platform to track your wallets by linking your Blockfolio, Delta, and CoinTracking accounts.
Koinly also supports automatic import for 14 blockchains including Bitcoin, Ethereum, Litecoin, NEO and EOS with over 6000 cryptocurrencies supported via CSV import and manual entry.
Koinly Pricing Plans
The platform offers a range of plans designed to cater to cryptocurrency traders of different asset levels.
- Koinly also has a free plan that can be widely used and allows anyone to keep track of their trades/transactions, exchange accounts and wallet, and also get a preview of capital gains taxes. The free account also provides access to FIFO and LIFO tax reports and allows you to import data from a wide range of sources and contact the team via live chat and email.
- The Hodler account costs $49 per fiscal year and allows you to generate FIFO and LIFO tax reports, as well as international tax reports, comprehensive audit reports, and Form 8949 and Schedule D reports.
- The Trader account costs $99 per fiscal year and provides access to a similar range of features and increases the transaction limit to 1000. When you commit to this plan, you also have access to priority support.
- Oracle account costs $179 per fiscal year for 3000 transactions and $279 for 10,000 transactions. The Oracle plan provides access to the full range of features available on Koinly. This includes access to priority support and the ability to generate custom reports. This plan also gets extra assistance from the support team who will perform bulk actions and process custom files without manual charges.
The platform provides access to a full range of features, and all plans currently include tax reports for the last five years of your crypto business.
To get a better idea of all the options available, you can check out the team’s full price list here.
How safe is Koinly?
The team prioritizes customer trust and the security of user data and uses a set of security protocols designed to protect against exploits or breaches.
More importantly, Koinly does not require your private keys or access to funds held on your exchange accounts. However, since it connects with your accounts via API, it’s always a good idea to disable the ability to pick up and swap when you set up your API connections.
All API/blockchain keys are encrypted using aes-256-gcm before being stored, and the website is fully served over https with all data sent to or from Koinly encrypted using 256-bit encryption.
Koinly also uses Amazon Web Services (AWS) and Heroku for data storage and hosting. AWS is an industry leader in providing secure hosting, and Heroku is a secure cloud application platform that isolates customer applications and data.
The platform applies security controls at every level, from physical to application, and applies security updates without any customer interaction or service interruption. This helps Koinly have a 99.9% uptime with any planned downtime announced in advance.
Koinly allows the user to register and authenticate through Google/Coinbase, eliminating some of the need to store passwords, and anyone who signs up via email has their passwords stored using bcrypt. The team also continuously scans for vulnerabilities and makes sure to restrict access to data to only authorized employees.
In short, the platform incorporates a good number of industry-standard security protocols, and the team also processes their security here. As always, keeping your personal data safe and staying reasonable with your information will also go a long way in protecting you from any data breaches.
Is Koinly suitable for beginners?
The platform is mainly aimed at people already actively engaged in various activities related to cryptocurrencies including trading, investing, mining, staking and lending. As a result, Koinly may not be directed at people who are just beginning their crypto journey.
However, the platform is useful for cryptocurrency enthusiasts of all levels of experience and allows anyone entering the industry now to keep track of their activities from day one. It’s also worth noting that Koinly allows you to keep track of your trades and transactions from the past five years, which allows more experienced traders to go back and easily report what they’ve done.
The platform is quite complete in its scope and connects to all major exchanges, wallet providers and blockchains. It also allows you to easily generate a number of reports including capital gains reports, income/transaction reports, year-end reports, and comprehensive tax reports that many people are interested in creating.
The resources section helps educate users, and crypto tax guides are a practical way to keep up to date with what’s happening in your jurisdiction. Localized tax reports are also useful, and error reconciliation features like automatic balance verification and negative balance alerts help anyone who isn’t too familiar with their taxes.
More active cryptocurrency enthusiasts may need to look into the benefits of oracle’s plan that allows you to monitor custom reports, live chat support, and a high level of transactions. These features combine to provide a more personalized service that suits high-frequency traders, while the free plan allows less active enthusiasts to easily keep track of all their accounts.
conclusion
Koinly is a viable option for anyone in a supported region looking for a way to keep track of their crypto assets in order to file tax reports. The web-based platform is relatively easy to use and allows you to quickly link your exchange accounts and wallet addresses and monitor your activities.
The platform integrates with a wide range of crypto service providers and covers its core activities well. The service provided helps to simplify the monitoring of all transactions and eliminate the headache of keeping up with all operations.
The service is fairly well priced, although there is no option to pay in crypto, and the company is still under development being around only since 2018.
However, the free account option allows anyone to register and test the platform and assess how accurately it helps you monitor all your transactions.
All in all, Koinly provides a service aimed at an emerging crypto industry, and the ability to keep track of all your crypto assets will appeal to anyone looking to stay financially compliant and make sure they can “cash out” or move between crypto and fiat with minimal headaches.
