Here is the most simple way to calculate your capital gains:
- Download Your Transaction History
- Upload your transactions into Koinly
- Check for accuracy
- Download your tax report(s)
1. Download Your Transaction History
Start by listing every exchange, wallet, blockchain, and platform that you've used. Then, export your transactions.
On exchanges, there will be a button somewhere to export your transaction history in a CSV file (usually in settings). The other way is to create a new API key which will automatically sync everything with Koinly (make sure to do read-only access).
For your cryptos, all you need is a list of your public wallet addresses since Koinly can pull the info from the blockchain.
2. Upload Your Transactions Into Koinly
Once you have your transactions, import it into Koinly. Upload your CSV files, paste your public wallet addresses, or enter your API data to automatically sync everything.
Koinly supports hundreds of exchanges and wallets. This includes the popular ones in Canada like Shakepay, Newton, NDAX, Ledger, Trezor, and much more.
If your blockchain or exchange is not supported, you will have to manually create a spreadsheet that is formatted for Koinly. Here is Koinly's template.
To get accurate reports, you need to import every wallet and exchange that you've used. If you're missing one, the numbers will be wrong.
As you upload your transactions, it will start looking something like the image above. Koinly will tell you if its found errors, duplicates, and so on. Double check it for accuracy and fix any warnings. Your Koinly dashboard will also start displaying your profit/loss and your total crypto holdings. Make sure your crypto holdings in Koinly matches your real portfolio. If it doesn't, there might be a wallet or exchange you forgot to import.
4. Download Your Tax Report(s)
Once the numbers look correct, you can finally download your final reports. Koinly gives you various reports which are helpful for taxes as well as seeing how your investments performed. There's also many advanced features in settings if you need more customization.
Koinly is not the cheapest crypto tax calculator, but it's compliant with the CRA's guidelines and saves you time. It has a beginner-friendly user interface and over 500+ integrations. It saved me many hours versus doing everything myself or getting an expensive bill from an accountant.
Who Should Use Koinly?
- If you have over 20 transactions to track (especially 100's or 1000's of transactions)
- If you want to save yourself or your accountant some time
- If you want a tool that's made for Canada and compliant with local laws
Who Should Not Use Koinly?
- If Koinly does not support your exchanges, blockchains, wallets, etc
- If you want to hire an accountant or professional to do it for you
- If you want to try one of the Koinly alternatives