I was sent this code after trying out their free tool. Maybe helpful for someone else.
Koinly is offering a flat 30% off on ALL tax plans, so if you are still waiting to finalize your crypto tax reports - here's your chance! The deal expires in 24 hours, so get it while it lasts!
US$20 for referrer and referee.
Curious, any reason to buy the tax plan instead of just getting the capital gains figure which is free?
either one you get , It has too many orphan transactions which makes it useless.
You have to export manually and import to get precise results , if you rely on API fetch , it misses a lot of stuff and very inaccurate result. (my experience at least!)
I only tested it with Binance last 12-18months , will test with bybit soon too as migrating out of binance due to limitations.
the only thing that it misses I've found is deposits (e.g. from bank to binance) and conversions (e.g. AUD<>USDT), which can easily be added manually by looking at the transaction history in binance.
that's good if yours like that , it missed all my future ones also some the spots which i used my derivative profit as source of purchase were all orphans.
I have around 2K transactions and barely 60-65% are correct.
It really depends on the exchange, some APIs are brilliant and some are shithouse.
It's not Koinly's fault, if you feed it crappy data you will get crappy results. Good data = good results.
I've been using Koinly for 2 years and I trade on a rather large number of exchanges.
I somewhat agree , some part is good data=good result but not all.
Analytic correlation engine in the back is also very important. Anyway if works for you fine then it's very lucky and makes Tax life much easier.
@iGBH : No, that's entirely incorrect. Please talk to your accountant before you submit your tax return 👍
I would not want you to do my tax…That's inaccurate. CGT applies to all CGT events. You only get a discount on CGT if you hold for more than 12 months
I suppose he’s meaning the discount, but missed a word.
Because without the full report, you can't verify the capital gains figure is actually correct.
And it's almost certainly not correct on the first go - there's usually a few glitches you need to fix (like sending coins from A to B being classed as a Sale then a Purchase, instead of internal transfer, because the timestamps were 0.1 seconds apart - you really need the seperate tax reports to find these issues…).
What's the actual price?
I am a tax accountant specialising in cryptocurrency.
From experience, these systems are perfect for those with pretty simple affairs.
As your affairs become more complex and the amount of potential tax payable increases - it is worth seeking professional advice as there are a few tricks and traps.
What would you say simple affairs are? I have all my transaction history but got lost with like the AUD to USDT to BNB so the conversions of AUD to the coin etc which supposedly we need to know?
Koinly knows the value of each coin and each currency, historically. So you don't need to know things like the AUD exchange rate on the 3rd Jan 2021 - it works all that out for you.
Export out your CSVs from the services you use, upload them all into Koinly, pull out the full tax reports, and go over them to make sure everything looks correct - if things are wrong, it's usually pretty obvious (as an example : if there's $8000 in the Income report, but you know you didn't get $8000 of Airdrops, then that $8000 is unaccounted for, and your source in Koinly for those coins is missing). Fix the errors, then tell the ATO the figures.
don't believe conversions affect capital gains, unless they're done a while apart? a trick with koinly is to enter the datetime in GMT+0 for any deposits or conversions as it doesn't retrieve that info from binance. e.g. if I did a deposit or conversion in binance on 30/09/2021 10am Perth time, I enter it as 30/09/2021 2am in koinly, that way I don't get unknown errors in transactions history etc.
Each exchange/conversion from crypto to crypto is a taxing point, and indeed from fiat to crypto and back are too. If it is just a conversion of the value of BNB in USD to AUD, then that isn't a taxing point, that's merely a determination of the value in your functional currency
@RMBC: yes by conversions I meant converting the deposited AUD amount into USDT that you use to buy crypto with.
@FeZZa21: Then that's a taxing point unfortunately. It's why crypto trading/investing can get very complicated from a records perspective quite quickly. Each time you change from fiat, ie a governmental currency to a cryptocurrency, or cryptocurrency to cryptocurrency, or cryptocurrency to fiat is a taxing point and the relative movement between purchase and sale in AUD is taxable
Hi @FeZZa21. I am not an accountant but that statement is incorrect according to ATO. All conversions are counted.
Outlined on ATO website, https://www.ato.gov.au/general/gen/tax-treatment-of-crypto-c…
A capital gains tax (CGT) event occurs when you dispose of your cryptocurrency. A disposal can occur when you:
sell or gift cryptocurrency
trade or exchange cryptocurrency (including the disposal of one cryptocurrency for another cryptocurrency)
convert cryptocurrency to fiat currency (a currency established by government regulation or law ), such as Australian dollars, or
use cryptocurrency to obtain goods or services.
No way your advice could be biased but thanks for disclosing.
No way for Koinly to deal with defi exchanges which in theory you should be declaring
Yeah i used there trial but it said like there was 8k or something unaccounted for or something and the balance was way off…. I got really confused to why so I gave up.
Maybe because I had sent BNB out of Binance to a seperate wallet? That was my only guess is that it couldnt account to where that amount of BNB was.
yeah some transactions have to be manually entered. I have over 200 transactions according to koinly and no errors/unaccounted for.
Sounds like you need to link Koinly with your wallet as well. Also track down the missing fund and either manually add them in or run the API sync again, sometimes it fixes itself.
man i wouldnt even know where to start hahaha…
looks like Binance have enabled a specific api for tax reporting: https://www.binance.com/en-AU/support/faq/538e05e2fd394c489b… not sure if that's different to a standard api that I'm currently using, will test by creating a new koinly account.
Try this tool as well https://www.ozbargain.com.au/node/653563 both let you try out for free. I went with Crypto Tax Calculator simply because they did suggest where to look at for my missing transaction. I use Binance and MetaMask and API syncing has been smooth so far.
Yeah, if you moved anything to any wallet, or ANY other crypto "thing" that was not Binance, you need to add all those into Koinly too.
It only works when it knows about ALL the places your coins can be (if it doesn't know the source and destination, then it can only assume that move was actually a sale/purchase).
I use metamask and have purchased only BNB to send to it to then by shit coins on pancake swap. How would i account for this or intergrate it into koinly?
It looks like the prices are in USD correct?
Eg: Hodler Total: $69.30 USD after coupon code… Is there any way to get this into AUD at a better rate or not?
Seems to be the case. I have updated title to reflect this.
finalize your crypto tax reports
What's this now?
it's when you pay money for making money
If I put in no code I have a discount of $9 on the lowest plan already for some reason, enter the code and my discount reduces to $2.70, which is 30% of 9… for some reason the code is discounting my discount lol.
So no code = $40, add the code and it becomes $46.30… how bizarre.
https://app.cryptotaxcalculator.io/ is better. I tried both.
CTC has better UI and fast as well. koinly interface is cluttered. On CTC you can see more on a single page because its in single line (one entry) and easy to track the mismatching deposit/withdrawals
I went with CTC for the same reason as you. I also posted a 40% off deal for CTC a few days ago.
I'm having difficulty with Koinly, Binance API integration is shit. Any converts are not counted and are listed as "missing purchases "
I usually convert AUD to USDT/BUSD instead of buying it so all those transactions are missing, so my account is wayy off. Importing the CSV is way off also. Binance are horrible with data exportation limiting the amount of generate "all statements" to 4 times a month, along with 10k maximum transactions per request for other data, As a high frequency futures trader it's a nightmare, 1 week of trading exceeds 10k transactions.
For others reading this, make sure your choice of exchange actually works properly with services like this, before you start to use them - you need to get this all in place before you start generating taxable events, otherwise life becomes hard.
I've found CSV exports work better than API linking for the exchanges I use.
Will koinly calculate your earnings through stakings on Binance?
Hey guys, I'm not into crypto yet, however seems like a bit of a minefield!
Is there any good resource for new Australian based investors, including the tax implications and so on?
Cheers…
When your revolutionary currency replacement still relies on USD lol…
USD has the most liquidity of any shitcoin which is why traders prefer to use that as a trading pair to stack sats.
All real currencies have liquidity, and people seem to want that in a currency. This is why crypto is a ponzi scheme, because it actually sucks at being an actual currency.
It doesn't matter how much liquidity there is in an asset if it's trading against itself. It's impossible to trade USD/USD, AUD/AUD or BTC/BTC.
A trading pair requires two different assets e.g. USD/AUD, USD/BTC, AUD/BTC, etc.
A trading pair requires…
Cool, I'm talking about usefulness as a currency, which crypto has currently demonstrated zero. Even the crypto businesses prefer USD which should tell you something…
@1st-Amendment: It tells me that I'm still early and should buy more.
Every time the inflation numbers comes out, I buy more. Every time there is a liquidation dip, I buy more. Every time the fear index drops to <20, I buy more. Every time the news says real property is unaffordable, I buy more. I basically buy every time there is doom and gloom in the market. This has served me well.
This has served me well.
That's how all Ponzi schemes work. They keep making easy gains until one day they don't.
A word of warning when using Koinly or any other retail tax apps.
These apps are not 100% accurate and shouldn't be trusted. They're sold as an "as-is" product and their calculations should be used only as an estimate. It's still up to the user to check the app's accuracy.
One more thing. There is no such thing as " a tax accountant specialising in cryptocurrency" or a cryptocurrency tax accountant.
It's all numbers and people are either good at it or they aren't.
These apps are not 100% accurate and shouldn't be trusted.
Not true. It's absolutely possible to use them accurately, with the necessary diligence.
They're sold as an "as-is" product and their calculations should be used only as an estimate.
Not sure what you mean by this - are you suggesting there's another source of truth you should use for your tax calculation ? If so, what is it ?
Whatever "estimate" you get from an app like Koinly, is the definitive article - there's nothing else you can use to provide a more accurate figure !
Not true. It's absolutely possible to use them accurately, with the necessary diligence.
I've answered this question before.
https://www.ozbargain.com.au/comment/11081782/redir
The Koinly FAQ says the users have to manually flag the in/out Tx when interacting with the polls.
Receiving staking rewards
Whenever you receive a reward, you should tag the Deposit transaction as a "Reward". This way Koinly will be able to summarize all reward transactions in your Income report so you can declare it in your tax returns.Sending coins into a staking pool
However, if you are using Ethereum or Binance Smart Chain then these transactions will get imported as withdrawals. You should find these and tag them as "Sent to Pool" to prevent gains from being realized on them.Receiving coins from a staking pool
However, for Eth, BEP20 etc these transactions will get imported as Deposits. You should find and tag such transactions as "Received from Pool".
Note that this only applies when receiving back the capital that was originally sent to the pool.It is very important to have proper Sent to Pool and Received from Pool pairs. If you tag a transaction as Received from Pool but have not tagged anything as Sent to Pool then you will see a "Missing purchase history" error because Koinly does not have any records of any coins being sent into the pool.
https://help.koinly.io/en/articles/4928636-stakingThis tells me that Koinly doesn't interact with the pools. All it does is track the in/out Tx for the wallets and can't distinguish the difference between in/out Tx and interactions with pools.
Koinly isn't coded to pull data from pools and should NOT be trusted to correctly calculate auto-compounding pools.
Other users have said that the API doesn't work.
https://www.ozbargain.com.au/comment/11128965/redir
either one you get , It has too many orphan transactions which makes it useless.You have to export manually and import to get precise results , if you rely on API fetch , it misses a lot of stuff and very inaccurate result. (my experience at least!)
I only tested it with Binance last 12-18months , will test with bybit soon too as migrating out of binance due to limitations.
.
https://www.ozbargain.com.au/comment/11129633/redir
the new tax api has same issues, doesn't export deposits and conversions etc
.
https://www.ozbargain.com.au/comment/11130775/redir
I'm having difficulty with Koinly, Binance API integration is shit. Any converts are not counted and are listed as "missing purchases "
I usually convert AUD to USDT/BUSD instead of buying it so all those transactions are missing, so my account is wayy off. Importing the CSV is way off also. Binance are horrible with data exportation limiting the amount of generate "all statements" to 4 times a month, along with 10k maximum transactions per request for other data, As a high frequency futures trader it's a nightmare, 1 week of trading exceeds 10k transactions.
.
Not sure what you mean by this - are you suggesting there's another source of truth you should use for your tax calculation ? If so, what is it ?
Use the good all fashion spreadsheet. Download it using a block explorer. More work but 100% accurate every time.
But you've just listed all the due diligence I specifically called out.
Yes, you need to do as many of those things as apply to your Crypto use, and sometimes even more.
Use the good all fashion spreadsheet. Download it using a block explorer.
A block explorer is only useful for private wallets.
If you want to use a spreadsheet, you'll need the CSV data from the exchanges you use - which is exactly the same data you're going to put into Koinly. Which is then going to make exactly the same calculations as your spreadsheet.
Wish I had this last week lmao.
Easy returns with Koinly!