What is Koinly
Using Koinly, a cryptocurrency tax program, users may calculate and track their capital gains and losses from cryptocurrency transactions. It is designed to support a wide variety of cryptocurrencies and exchanges and can automatically import data from these sources to provide appropriate tax reports.
Koinly supports tax-loss harvesting strategies and calculates capital gains and losses using a number of techniques. Schedule D, IRS Form 8949, and Capital Gains Report are just a few of the tax reports that the software is capable of producing.
The history of Koinly
Koinly was started in 2018 by Robin Singh, a software engineer and data scientist by training. The company was established in London, United Kingdom, and initially offered a variety of tracking and analysis solutions for bitcoin. However, after learning the challenges bitcoin traders and investors had when calculating and filing their taxes, Koinly shifted its focus to tax reporting software.
The tax reporting tool from Koinly was launched in 2019, enabling customers to combine their bitcoin transactions from various crypto exchanges and wallets to create tax returns that comply with local legislation. The website swiftly gained popularity among cryptocurrency traders and investors, particularly in the United States where tax reporting regulations for bitcoin transactions were tightened.
Koinly has expanded its functionality and improved its software continuously since its debut. The business raised $4.9 million in funding in 2021 to fuel its expansion and further the development of its tax reporting platform. Thousands of bitcoin traders and investors use Koinly now to manage their tax reporting requirements across the globe.
How Koinly works
Here’s how it works:
- Users can link their bitcoin exchange accounts and wallets to Koinly using API keys or CSV files to import data. Koinly supports over 6,000 coins, all significant exchanges, and wallets.
- The software used by Koinly automatically classifies transactions into buy, sell, exchange, and transfer categories. It can also automatically detect transactions that are unusual, such as forks, airdrops, and others.
- Calculating capital gains: Koinly uses a variety of methods to calculate capital gains and losses for each transaction.
- Producing Reports: Koinly produces tax reports in a number of formats, including IRS Form 8949, Schedule D, and Capital Gains Report, after calculating capital gains. In accordance with their needs, users can also modify their reports.
- Reports can be exported as PDFs or CSV files, which users can utilize to prepare their tax returns.
Koinly also provides users with a dashboard that gives them an overview of their portfolio’s performance, including unrealized gains and losses, and helps them identify their tax liabilities. The software is designed to be user-friendly and intuitive, and users can access customer support through email or live chat.
Can Koinly be trusted
Koinly is a trustworthy and safe bitcoin tax software, thus yes. Since its 2019 launch, Koinly has been utilized by thousands of cryptocurrency investors and dealers, and the business has a good reputation in the industry.
Koinly uses industry-standard encryption to protect user data since it takes security very seriously. Amazon Web Services (AWS), which offers robust data protection safeguards, hosts the company’s servers. In order to protect user data, Koinly additionally uses two-factor authentication (2FA) and other security measures.
Additionally, Koinly’s tax reporting software is highly accurate and reliable. The program uses a variety of methods to calculate capital gains and losses, and it is frequently updated to be compliant with changes to tax legislation in different countries. In addition, Koinly provides users with complete tax reports so they may file their taxes with assurance.
Overall, Koinly is a reliable and trustworthy cryptocurrency tax tool that may help traders and investors manage their tax reporting responsibilities exactly and effectively.
Is Koinly free
Users can generate tax reports for up to 10 transactions during a free trial offered by Koinly. To continue using the software after the free trial, customers must subscribe to a premium plan.
Koinly has a number of paid plans with various features and price points. Depending on how many transactions and swaps users need to keep track of, the annual prices for the plans range from $79 to $399.
Although Koinly is a paid service, it can save time and simplify tax calculation and filing for bitcoin traders and investors. The program can easily and rapidly produce accurate tax reports because it is made to be user-friendly and intuitive.