Koinly Review: Pros and Cons of the Cryptocurrency Tax Software

Looking for assistance in calculating your cryptocurrency tax in Australia? Koinly is here to help.

As cryptocurrency investments become increasingly popular in Australia, managing taxes related to these investments can quickly become overwhelming. However, with Koinly, investors can streamline their tax reporting and stay compliant with Australian tax laws.

Read on for a detailed review of Koinly and how it can simplify the cryptocurrency tax reporting process.

Koinly is a cryptocurrency tax software that can help simplify the process of reporting taxes related to cryptocurrency trading and investments. After testing out the software, I found that it offers several useful features for managing cryptocurrency transactions and generating accurate tax reports.

Integration

One of the most significant benefits of Koinly is its integration with over 300 cryptocurrency exchanges and wallets. This allows users to easily import their transaction data into the software and track their cryptocurrency investments and trades in one central location. The interface is straightforward and user-friendly, making it easy to navigate and understand the data.

Tax Methods

The software’s algorithms are advanced and accurate, allowing it to handle complex transactions such as crypto-to-crypto trades, wash sales, and transfers between different exchanges and wallets. It also supports various tax accounting methods, including FIFO, LIFO, and specific identification, making it flexible and adaptable to individual user needs.

Capital Gains and Losses

Koinly also offers detailed tax reports for capital gains, losses, and income, which can be customized and exported to be used to file taxes with the Australian Taxation Office (ATO). The software is updated regularly to ensure it’s up-to-date with any new tax regulations, including the new cryptocurrency tax guidelines issued by the ATO in 2021.

Pricing

In terms of pricing, Koinly offers various plans depending on the number of transactions and exchanges/wallets being used. There’s a free plan available for up to 10 transactions, making it accessible for smaller investors, while paid plans offer additional features for higher transaction volumes.

One potential downside of Koinly is that it may not be necessary for all cryptocurrency investors, particularly those with simpler transactions and smaller volumes. It’s still recommended to consult with a qualified accountant or tax professional to ensure compliance with Australian tax laws and regulations.

Conclusion

Koinly is a reliable and user-friendly cryptocurrency tax software that can help simplify the often-complex process of cryptocurrency tax reporting. Its integration with various exchanges and wallets, advanced algorithms, and detailed tax reports make it a valuable tool for managing cryptocurrency investments and staying compliant with tax regulations.

Pros and Cons

Koinly is a popular cryptocurrency tax calculation and management software that allows users to keep track of their crypto investments, generate tax reports, and integrate with various cryptocurrency exchanges and wallets. Here are some of the pros and cons of Koinly:

Pros:

Easy to use: Koinly is user-friendly and easy to navigate, making it a great option for both beginners and advanced users.
Multiple integrations: Koinly supports integration with over 300 cryptocurrency exchanges and wallets, making it easy to import and track your transactions across multiple platforms.
Accurate tax reporting: Koinly’s tax reporting tools are accurate and reliable, providing users with detailed tax reports that can be used to file taxes with the IRS and other tax authorities.
Comprehensive features: Koinly offers a range of features such as portfolio tracking, real-time market data, and capital gains calculation, making it a one-stop-shop for cryptocurrency management.

Cons:

Price: Koinly is not the cheapest cryptocurrency tax software on the market, with pricing plans starting at $49 per year.
Limited customer support: Koinly’s customer support can be slow to respond to user inquiries, and the company does not offer phone support.
Limited customization: While Koinly offers a range of features, some users may find that they cannot fully customize the platform to suit their specific needs.

Overall, Koinly is a great option for cryptocurrency investors who need an easy-to-use, comprehensive, and accurate tax reporting tool, but it may not be the best fit for users on a tight budget or those who need a high level of customization or customer support.

About Koinly

Koinly is a cryptocurrency tax software designed to simplify the often-complex process of calculating and reporting taxes related to cryptocurrency trading and investments. With its user-friendly interface and advanced algorithms, Koinly enables individuals to track their cryptocurrency transactions from various exchanges and wallets in one central location, and generate accurate tax reports with ease.

Founded in 2018, Koinly has rapidly become one of the leading cryptocurrency tax software solutions available, serving users in over 100 countries worldwide. The software supports various tax accounting methods, including FIFO, LIFO, and specific identification, and is updated regularly to ensure it’s compliant with the latest tax regulations.

Whether you’re a casual investor or a professional trader, Koinly offers various plans to suit your needs, with a free plan available for up to 10 transactions. With Koinly, you can streamline your cryptocurrency tax reporting and focus on what really matters – growing your investments.

Contact Details

Website: https://koinly.io/
Support page: https://help.koinly.io/
Twitter: https://twitter.com/koinly_io
Facebook: https://www.facebook.com/koinly.io
LinkedIn: https://www.linkedin.com/company/koinly-io/
Email: support@koinly.io
Address: Koinly OÜ, Sepapaja tn 6, Tallinn city, Harju county, 15551, Estonia.

Testimonials

The ATO requirement of working out income, capital gains and loss is so complicated. But thanks to Koinly, I’ve been able to quickly input my wallet and exchange details for all my crypto trades and holding throughout the financial year, and produce a report for my tax agent to use.

Kris W. Click Seed Pty Ltd

Koinly is one of the better crypto tax providers available to Australians. It integrates well with Independent Reserve and my wallet using FIFO or LIFO. It’s a time saver when it comes to tax time.

Dugan J. Aqua Kitty Pty Ltd

As a tax agent, many of my clients struggle with producing workings for their cryptocurrency gains and loss, income and expense throughout the financial year. I always suggest to my clients to use Koinly as it produces the most accurate tax result for the yearly income tax return.

Deymos Deymos Accountants

FAQ

What is Koinly?

Koinly is a cryptocurrency tax software that helps users calculate and report their taxes related to cryptocurrency trading and investments.

How does Koinly work?

Koinly integrates with various cryptocurrency exchanges and wallets, allowing users to import their transaction data and generate accurate tax reports. The software uses advanced algorithms to calculate capital gains, losses, and income, and supports various tax accounting methods.

Is Koinly available in Australia?

Yes, Koinly is available in Australia and supports Australian tax reporting requirements.

What exchanges and wallets does Koinly support in Australia?

Koinly supports over 300 cryptocurrency exchanges and wallets, including popular exchanges such as Binance, Coinbase, and Independent Reserve.

What tax reporting methods does Koinly support in Australia?

Koinly supports various tax accounting methods, including FIFO, LIFO, and specific identification. The software also generates detailed tax reports for capital gains, losses, and income, which can be used to file taxes with the Australian Taxation Office (ATO).

How does Koinly handle crypto-to-crypto trades in Australia?

Koinly’s algorithms are designed to accurately calculate gains and losses for crypto-to-crypto trades in Australia. The software can also handle complex scenarios such as wash sales and transfers between different exchanges and wallets.

Does Koinly support the new ATO cryptocurrency tax guidelines?

Yes, Koinly is updated to support the new cryptocurrency tax guidelines issued by the ATO in 2021. The software can help users comply with the new reporting requirements for cryptocurrency holdings, income, and gains.

How much does Koinly cost?

Koinly offers various pricing plans, ranging from a free plan for up to 10 transactions to paid plans for higher transaction volumes and additional features. The pricing varies depending on the number of transactions and exchanges/wallets being used.

Is my data safe with Koinly?

Koinly uses bank-grade security measures to protect user data, including two-factor authentication, encryption, and regular security audits. The software also adheres to privacy regulations and does not share user data with third parties.

Do I still need an accountant if I use Koinly for cryptocurrency tax reporting?

While Koinly can help simplify the process of cryptocurrency tax reporting, it’s still recommended to consult with a qualified accountant or tax professional to ensure compliance with Australian tax laws and regulations.