How to Calculate Your Bitcoin Taxes with Koinly in 2024
TL;DR: Koinly automatically calculates your Bitcoin taxes by importing transactions from 700+ exchanges and wallets, then generating tax reports for your country.
Key takeaways
- Bitcoin is treated as property in most countries—you owe capital gains tax when you sell at a profit.
- Koinly supports the US, UK, Canada, Australia, Germany, and many more jurisdictions.
- A free tier lets you view all transactions before paying for reports.
Tax season can be overwhelming for crypto users, but it doesn't have to be. With the right tools and knowledge, you can easily calculate your Bitcoin taxes and stay compliant with tax authorities.
Why You Need to Report Bitcoin Taxes
In most countries, Bitcoin is treated as property for tax purposes. This means:
- Capital gains when you sell Bitcoin for more than you paid
- Capital losses when you sell for less than you paid
- Income if you earn Bitcoin through mining or services
What is Koinly?
Koinly is a cryptocurrency tax software that automatically calculates your crypto taxes. It supports over 700+ exchanges and wallets, making it easy to import all your transactions.
Step-by-Step Guide
1. Create Your Koinly Account
Sign up for a free account at Koinly. You can try it free to see all your transactions before paying for reports.
2. Connect Your Exchanges and Wallets
Koinly supports major exchanges like:
- Coinbase
- Binance
- Kraken
- And 700+ others
3. Review Your Transactions
Koinly will automatically categorize your transactions, but you should review them for accuracy.
4. Generate Your Tax Reports
Once everything looks correct, generate your tax reports for your country's tax authority.
Supported Countries
Koinly supports tax reports for:
- United States (IRS Form 8949)
- United Kingdom
- Canada
- Australia
- Germany
- And many more
Pricing
- Free: View all transactions
- Starter ($49): Up to 100 transactions
- Hobbyist ($99): Up to 1,000 transactions
- Trader ($179): Up to 3,000 transactions
- Pro ($279): Unlimited transactions
Secure Your Bitcoin While Managing Taxes
While you're organizing your crypto for taxes, don't forget about security. Many investors lose Bitcoin to exchange hacks or software wallet vulnerabilities.
The Ledger Nano X is the most trusted hardware wallet, used by millions worldwide to secure their Bitcoin. It features:
- Military-grade Secure Element chip
- Mobile app with Bluetooth connectivity
- Support for 5,500+ cryptocurrencies
- Proven track record since 2014
Protect your Bitcoin with Ledger →
Get Started Today
Don't wait until tax season to organize your crypto transactions. Start using Koinly today and make crypto tax season stress-free.
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