Paying Crypto Taxes in 2020
Cryptocurrency tax policies are extremely confusing, the level of confusion can vary wildly of course per country, coupled with the fact that legislation in the majority of countries has changed in the last few years making it much more difficult for cryptocurrency traders to work out their tax liability.
If you are a crypto trader then working out your tax liability can be a total nightmare, if you are executing dozens of trades per week, then how do you work out what your tax liability should be? Many traditional accountants or tax experts are simply not well versed in cryptocurrency tax rules and what actions are deemed taxable events.
Not surprisingly there has been an increase in specialist companies across the world whose main skill is to help traders, part-time traders and anyone who holds or has traded in cryptocurrency to calculate their tax liability in their residing country. So who do you know who to speak to? Luckily here at Lykke we have collaborated with Koinly who are one of the leading cryptocurrency tax specialists in the market.
How does Koinly work?
Koinly is a crypto tax startup that helps investors prepare their crypto tax reports in a fast and efficient manner. By linking crypto exchange accounts and public wallet addresses with Koinly via an API, investors can get a detailed capital gains report within a matter of minutes.
Their platform currently supports over 400 crypto exchanges and wallets as well as 6000 cryptocurrencies. It also comes with tax-planning features that can help investors plan their trades in a tax-efficient manner, give advice on how to minimise tax liabilities and even speak to a qualified accountant well versed in cryptocurrency rules & regulations.
Some other features include the following
- - Income reports for Mining, Staking and DeFi interest.
- - Capital gains summary form that can be submitted to the HMRC
- - Full support for crypto taxes in UK including Share Pooling
- - Compliant transaction logs
- - Support in more than 100 countries with more coming
- - Portfolio tracker
What sets Koinly apart from other cryptocurrency tax firms? We believe it's the fact that Koinly go beyond what their typical competitors do by incorporating trading analytic tools, a portfolio tracker and support levels for their customers via a live chat facility. They are also free to sign up to and you only pay for your reports, many competitor tax solutions on the market require you to make a purchase upfront.