Guest post by Robin Singh, CEO of Koinly.
While some individuals may prefer to use a cryptocurrency accountant for their tax needs, others may be well-versed enough in the tax space that would rather handle their taxes on their own. Even if you fall in the latter category, however, you can greatly benefit from tools designed specifically for calculating your crypto gains and losses.
The biggest problem for both experienced and inexperienced crypto holders is that it can be hard to find the right tool for your needs. Although crypto taxes certainly aren’t new, the number of products out there is limited and not all of them are properly equipped to serve your needs. So, what should you turn to?
If you can relate to the above, one great resource to use is Koinly. With Koinly, doing your crypto taxes becomes super easy. How? Let’s take a look…
Hassle-Free Sign-Ups Make It Easy to Get Started
Users of crypto are no strangers to long sign up processes and having to go through several hoops just to use a program. It’s enough to deter many from even getting started. Fortunately, signing up for Koinly is quick and easy. All you have to do is provide them with a name and email or connect to your Coinbase account.
Once you’ve signed up (trying Koinly is free by the way), you are ready to begin calculating your crypto taxes.
Import Your Information to Begin the Tax Analysis Process
If you’ve ever tried to do crypto taxes on your own without assistance, you know that the process of tracking all of your transactions, figuring out what the asset’s value was at the time of sale or trade, and figuring out what your capital gains or losses are.
Beyond that, however, you also need to calculate crypto taxes that come with income-earning activities and determine what can be done about lost or stolen funds. Overall, crypto taxes are far more complex than traditional fiat taxes, making it important to have a tool that can make the process of figuring out what you owe easier.
With Koinly, the good news is that you don’t have to worry about hunting down each of your crypto transactions and putting them into the tax calculator. Getting started is as easy as exporting your crypto transactions from your exchange or wallet service and importing it to Koinly. They also make it so that you can connect with your exchange to get the information right at the source.
Supporting over 300 exchanges, 10 blockchains, and more than 6000 cryptocurrencies, you are sure to find the digital assets that you use through Koinly. Once everything is uploaded, Koinly begins to analyze the transactions to help you understand where you can save, what you owe, and how you can make smarter cryptocurrency investment and trading choices in the future.
Verify Your Transactions and Download Your Report
With all of your transactions in one place, all that is left to do is to go through them and determine whether these transactions are buys, sells, trades, or income. If everything looks ready to go, the next step (and by far the easiest) is to download your tax report!
Whether you are looking to download a Form 8949, an FBAR, a K4, a Schedule D, or any other tax form related to your cryptocurrency earnings and profits, Koinly has you covered. However, it doesn’t stop there.
Koinly goes above and beyond by not only giving you your expected report but by also making it easy to implement into your regular taxes. This platform is compatible with major tax programs like Xero and TurboTax so that you can import your crypto data into your federal and state tax reports with ease.
If you worry about the possibility of being audited, Koinly also has the ability to produce comprehensive audit logs so that you have a complete report of all of your transactions in the event of an audit.
All You Have to Do Is Get Started!
That’s all there is to it! Using Koinly is as simple as going through the three steps listed above to figure out your crypto taxes. Armed with a working knowledge of how to file your bitcoin taxes and Koinly’s tax calculator, you can rest assured that you will be able to handle your taxes with ease next year. Just visit their website to get started!
Thank you for reading and sharing this article. We appreciate you.
Robin is the founder of Koinly, a cryptocurrency tax solution that helps investors prepare their crypto tax reports.
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