Anyone using the accountant program with Koinly? I had a client bring in a tax report and it seemed pretty good. Any thoughts?
Jim
I just submitted a return a few days ago where my client had just over 500 cryptocurrency transactions to review. He imported them all into Koinly. He gave me both the Excel .csv file of all his transactions, and also a printout of the Koinly financial tax report.
I had the same concerns you did about the validity of the Koinly financial reports. I did a thorough review of the transaction data, sorting them by the various crypto-currencies (about 55 in total) to validate that the Adjusted Cost Base of each currency was accurate, and validate all the other data in the report (capital gains, Stake Fees, transaction fees, other income, etc). I was very impressed, as I was able to replicate all the financial results, and thus use them on his return.
In consideration that CRA lists all transactions as separate entries when we use AFR to import T5008 slips, etc, I chose to do the same on Schedule 3 vs grouping like currencies transactions together, thus saving myself time. In TaxCycle, I simply creates a Schedule 3 import page by entering the number of rows I needed on Schedule 3 and created the template. I sorted my Excel data to import by date, and copied the data into the appropriate cells on the Excel Schedule 3 Import Template. I then imported the data. Worked like a charm to populate Schedule 3, l and it was fast. Before doing the import, I also matched the transaction fees with the proper transaction so that those would also be imported into TaxCycle on the appropriate transaction line.
In review of my clients transaction history, I determined that he still qualified to file as an investor vs a business, which included his small Staking income.
I claimed his small Staking income on Line 12100 (foreign income). I cautioned my client that his Staking Income could sway his transactions to the Business Income side if he focused on building on this income in future years.
I claimed his Other Income from Cryptocurrency transactions on Line 13000 (other income). This income was just over $3K and resulted in my client having a small balance owing on his return.
Hope this is helpful, Jim.
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Entering into the tax program isn’t really the issue.
It’s using Koinly. I have only had one exposure to it. Was a new investment in 2021 so I was able to confirm all his cash deposits and withdrawals to the various exchanges then added all the transaction totals from the report and the closing ACB matched his holdings to the penny so I’m pretty confident the report is accurate.
Koinly has an accountant program. I have not joined it yet but was wondering if anyone here has.
What I have figured out so far is if your client is using Koinly they can share their account with your accountants program. If client hasn’t paid for the tax report you can generate the report and I believe that is a bit less expensive than what they would charge the client to generate it. (As accountant you prepay for a bundle of reports)
What I’m not sure of is if the client isn’t using Koinly can we create an account for the client, link all their wallets and then generate a report.
I’m waiting for a call from them today, we have been emailing but not getting to far…
Jim
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This was only my 2nd exposure to Koinly too. My last years client was on a much smaller scale than this years. Like you, I also considered the Accountant version and reached out to Koinly for some answers but haven’t heard back. My interpretation of what I was reading for pricing is that the Starter Package requires the purchase of 5 licenses (minimum licenses: 5) to start with, so at $89 each license, that’s pretty expensive if you are only processing transactions for one client. Luckily, my client purchased the more detailed financial package so I didn’t have to pursue the Accountant version. I don’t anticipate any other returns involving cryptocurrency this tax season.
I had a client reviewed this summer for crypto transactions, I ONLY submitted the Koinly statement they provided me (they trade on numerous platforms) and the review closed with no issues. I was somewhat testing to see what the CRA wanted in terms of Crypto, and this seems to have satisfied them…for now. This was my first situation with it as well.
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