1. Add your wallets and exchange accounts
For an accurate tax report the first and most important thing is to add your complete transaction history. Koinly needs the transaction history from all previous years of trading and for all of your wallets.
We have written up an article that explains why Koinly needs all this data, you can find it here.
2. Verify that all your data has been imported
Some exchanges do not provide your full transaction history via API so you have to import the missing data using CSV files.
Example: Binance doesn't allow retrieval of your trades for delisted coins via their API. Huobi only provides the last 90 days of data etc. Read the instructions on the API page to see if the API is known to have such issues.
Here's how you can quickly determine if all your data has been imported:
- Navigate to the Wallets page in the Koinly app
- Click on a wallet to see your balances
- Compare the balances shown on Koinly with your actual balances.
If everything was imported correctly the balances should match. If they don't match then you can follow this article to find the problem. Note that minor differences in the balances are normal, you only need to worry if the differences are very large.
Tip: If you are using auto-sync, then Koinly carries out the balance comparison automatically. You will see a yellow icon next to a wallet if Koinly detects that the balances are not same:
4. Review warnings
Go to the Tax Reports page and select the year that you want to download a report for (also look at some of the previous years).
If Koinly has detected some issues then you will see a warning like this:
Click on the Learn more link to see how to resolve it.
5. Review transactions with very high gains
Go to the Transactions page and sort the transactions by Highest gains.
You are looking for 2 common problems here.
- Transfers to your own wallets that are showing up with a profit/loss
- Trades/withdrawals with unrealistically high gains
5. Tag any income
Koinly can tag Airdrops, Forks, Mining/Staking/Interest automatically so they appear on your final tax report, but in cases where you are importing transactions manually, you may need to tag them yourself.
You can do this easily by going to the Transactions page on Koinly and filtering by Deposit transactions. Go over the deposits and mark any that are income.