thetradingparrot
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Tax reports with Koinly: early feedback
🕑 Added 2021-03-02 20:58:34 +0000 UTCFor those based in the UK, the tax year is ending in April and we know we have to make sure we are ready for reporting taxes. Not fun.
If like me you:
1) live in a place that requires you to pay taxes for all your income from trading crypto (like UK and US among many others).
2) you constantly trade (or your bots) and don't have time to manually calculate the tax you have to pay.
Then Koinly is the way to go. There's a few alternatives but they lack behind Koinly in terms of features, speed, reliability and compatibility with exchanges for automated syncing data.
The good
- API sync all your transactions with almost every exchange out there
- Automatically produce reports and track beforehand how much you will have to pay or if you actually don't have to pay, depending on your location.
- Very easy to use
The not so good
Not everything is great and so far I have found a few limitations I wished I knew before!
- Not an actual Koinly limitation, but worth knowing upfront: Huobi only keeps 4 months of data...so if you don't sync with Koinly often enough you will lose the data that you actually need to file your tax self assessment reports.
- FTX sub-accounts are not supported yet on Koinly.
- Importing data takes many hours. If you've been running bots like Amika and Venka you wouldn't imagine how many transactions these bot do. I just triggered a sync and 20K transactions are taking around 2 hours to sync. If you run Koinly on an account that has never been synced before and you constantly run some bots in a year don't be surprise to see hundreds of thousands of transactions which will take a lot of time for Koinly to import.
- If Koinly finds a difference between the total of your current holding in the exchange vs their calculation then you will have to make a decision on which one you trust. There's an option to decide. This is always making me a bit nervous as I wouldn't want the taxman to think I intended to tax evade if koinly makes a wrong calculation...not many options here, I wouldn't want to know how much my accountant would charge me to calculating manually the tax for 200.000 transactions.
Let me know in the comments below: are you already using Koinly? do you know any better alternative? why is it better?
Get $20 discount when you sign up to Koinly using my referral link:
https://koinly.io/?via=8BF39B7C
Comments
I use the latter.
I've only been bot-trading since mid-Jan, but after importing to Koinly I'm seeing over 30,000 transactions (grid bots being the likely culprit). Stretched to an entire year that could put me at over 240,000 transactions. The top level Koinly subscription allows for 10,000 transactions, with every additional 1,000 being charged an extra $10. So for 230,000 transactions above the base level this would cost an additional $2,300 - not an insignificant cost-penalty. How far did your review of other software go? I'll look into this in more depth, but a brief search yesterday suggested that Cointracking.info has both UK tax reporting and an unlimited transaction count. I'll review with my accountant in due course as well and report back with their advice.
