Cryptocurrencies are becoming increasingly popular and regulations are tightening around the world. Some governments have gone as far as outright banning them, others are currently trying to legislate cryptocurrencies and a few still don’t have clear laws regarding cryptos.
Cryptocurrencies are not necessarily untraceable even though most of them claim to be anonymous. Bitcoin, for example, should only be considered semi-anonymous as tracing transactions back to the user is actually possible.
The IRS (Internal Revenue Service) recently sent letters to cryptocurrency holders warning them to pay the amount of money they owe. Platforms that offer solutions for cryptocurrency tax-related issues are becoming increasingly popular.
What is Koinly?
Koinly is a platform offering solutions for cryptocurrency taxes. Koinly includes a cryptocurrency tax calculator that will automatically calculate all your trades. It works through the use of API keys and is currently supporting 33 different exchanges.
Additionally, if an exchange is not supported, the user can download past transactions and compile them into a CSV or excel file to import it into Koinly.
Koinly’s tax calculator allows users to generate capital gains reports using more than 5 years of historical data for over 6000 different digital currencies. It can also generate reports for income about mining, staking and different services even gifts or donations.
Cryptocurrency Tax Guides
Calculating crypto taxes can be a complex and time-consuming tax. Koinly has released a complete cryptocurrency tax guide for US citizens that goes into detail on what constitutes capital gains, which forms to fill or how to deduct losses.
Koinly offers more specific guides, for example how to reduce your taxes by accounting for fees.
The platform has also released a full guide on how to calculate your crypto taxes by yourself here.
What Are Customers Saying?
One of the best indicators for a company’s success is customer reviews. There aren’t that many reviews about Koinly, however, the majority of them are really positive.
On reviews.io, Koinly has a 5-star overall score with users praising how fast and responsive the team of Koinly has been.
Koinly also possesses a 5-star rating on Trustpilot.
With the increased regulatory pressure, crypto users are in need of tax services. Koinly is easy to use and understand because it has a very intuitive UI. Additionally, the support service offered by Koinly is great and praised by all customers.
If you need a cryptocurrency tax platform to help you with taxes, Koinly is the perfect solution.