Starting with new Koinly account

Koinly Support
1

Hello :raised_hand_with_fingers_splayed:

I live in UK :uk: , and I am a defi a dex user. I also invest in ICO projects (seed/private stages). My friends and I often did a joint drop because the entry threshold was too high. For tax year 2020, I had several tithes of transactions (70 portfolios and exchanges). To do the 2020 settlement I worked about 500 hours on it… :face_with_raised_eyebrow:

I’m currently starting the 2021 tax raport, and there are also about 10k transactions. My koinly through this is very slow so the work is very slow and not productive. I came up with another idea but I don’t know if it is realistic to do.

I thought I would check on the old koinly account the wallets that were used in 2020 and add only them to the new koinly account with synchronization from the beginning of the new tax year. A lot of purchases will be missing and the cryptocurrency balance will not match. But I have the report for the previous year and I have the end balance there. I will generate the ‘End Of Year Holdings Report for 2020’ and upload to a new account so that the balance of cryptocurrencies in koinly with what I realistically own will agree. What do you think?

Why does he want to do this?

  • I didn’t use many wallets from 2020 in 2021
  • I also used less DEX & CEX
  • Wants to have less transactions in koinly, thus making koinly faster. By doing this each year will be faster. I will also use less computing power of koinly.
4

One problem that I see with this approach is that Koinly won’t know the date of acquisition of individual tokens in the “year end” pool of FRM tokens and, as such, won’t be able to properly apply the cost base rules for capital gains purposes. In other words, Koinly won’t be able to determine whether tokens disposed of from the year end pool are section 104 pool, BnB or same day txns as all tokens in the pool will be assigned the same acquisition date. Ultimately this may not have a large impact on your tax calculations as it should only impact disposals of tokens in the first 30 days of the new year.