I don't understand

Tax Questions
#1

In the 5 years I have been investing in digital assets I have never made a profit. I am even, if not slightly down on the money I have invested.

Despite this, my tax reports keep claiming that I have capital gains of 27,000 dollars for the year… I had to pay the Australian Tax Office around 8000 dollars last year and I just don’t understand why.

I am worried it will happen again this year

Please help

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#2

It isn’t completely accurate. Mine isn’t considering the fact that I withdrew to a hardware wallet and and back and has effectively shown my deposits being double as a result which isn’t accurate for tax purposes. It’s also showing I have a 5 grand capital loss which isn’t accurate either because I haven’t sold, merely moved to my hardware wallet. It isn’t taking that into account so I have badically wasted $140 for a useless tax report.

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#3

@Andrew_Getgood

You need to add all your wallets to Koinly so it can pair transfers, otherwise there’s no way of knowing you own that wallet, that’s why it triggers a gain/loss.

Check the help centre articles for guidance, this one will solve your Hardware wallet issue - https://help.koinly.io/en/articles/4735636-how-to-import-data-from-crypto-wallets-ledger-trezor-etc

@David_Brennan Calculations are done based on your imported data and the cost-basis method. Please review your data properly, and instruct the help of an accountant if you are having trouble making sense of the numbers. They will be able to verify the calculations for you. :+1:

#4

I was in the same boat… One year I had over 10k transactions with hundreds of errors and warnings to work through. I was getting nowhere and wasn’t confident at all of its accuracy. The solution was simple in the end, as it offen is…

  1. Delete your API’s and never bother with them again.
  2. Export all your transaction history from the beginning of time from all exchanges you’ve traded on as CSV files.
  3. Append the CSV files so you only have one CSV for each exchange saved on your computer. This approach makes it very easy to spot gaps in data and avoids duplicate concerns.
  4. Add your wallet address next, such as Trust Wallet or Metamask. This will automatically include everything on the chain or eth network (no need to add every addresses for each asset in the wallet).

Try this approach and you should be 90% to 95% on your way to a huge sigh of relief. The above recommendations should help to iron out any additional issues.

Note some exchanges only keep 2 years history such as KuCoin so I recommend getting on top of those quickly.

Koinly has proven to be a better sanity check over other rivals, as the reports are always very close to own estimations.

Good luck

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#5

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