Unfortunately, it is tax time for most everyone. With that said I have been reviewing and looking at several services/softwares to help us with our Cryptocurrency and the taxables events. I have evaluated 5 different ones and have settled on 1. The following were the 5 I looked at in order.
- Crypto Trader
- Bear Tax
- Coin Tracking
After careful consideration and thinking about the big picture I chose Koinly. Crypto Trade was a close second but Koinly was just a little better and had better support for more countries. Most of the others were more geared towards the US taxes.
Bear Tax was a decent option but again geared toward the US. Koinly stood out above the others as it was full of support for the US and many other countries. The 3 I have mentioned above all also have support for Turbo Tax which is a very popular tax filing software in the US.
Cointracking was more expensive in the way it charges on a monthly basis. As for Accointing it just did not impress me as much as the others. The top 3 I listed I feel would be good for our US members but I prefer and recommend the number 1 listed service/software Koinly.
Now for the good stuff. Koinly works great for the majority of the Exchanges and Wallets out there. Most of the exchanges work via API connections and import the transactions automatically for you.
In addition Koinly allows you to use the Blockchains as well to import transactions. You can also export transactions from exchanges and wallets and then import them into the Koinly service/software. Koinly is not the cheapest but in my opinion is the best choice.
You start by connecting your exchanges with Koinly via API. Depending on your wallet you will want to export transactions and import them into Koinly. You can also use the different blockchains and your wallet addresses and/or transaction id to find and import transactions.
Once you have the transactions all in Koinly you should review the transactions and make sure if any are transfers to and from your wallets or exchanges then make sure to set them as transfers, not withdrawal.
Withdrawals and Payments to others are considered a taxable event. Be sure to get the cost basis so you will only be taxed on the difference of what you paid for it and what it was at the time of withdrawal or payment.
Using Koinly is easier than you think. Koinly makes the importing and tracking of transactions easy. Then when you are ready it will generate the tax report for you.
Many accountants and even the government tax people, I don’t think know and understand everything about the Cryptocurrency and the taxable events etc. The Koinly service/software makes it easier than ever to know what you need to file taxes on.
You can get a free trial here: KOINLY
It is also an eye-opener in terms of tracking your crypto activities and a clue as to what the taxman can trace!