Newton Welcomes Koinly!

April 1, 2022
April 1, 2022
Newton Welcomes Koinly!

We’re always seeking ways to make personal finance easier for our customers, and that includes the dreaded t-word—taxes. We hope you’ll be thrilled to know we’ve partnered up with Koinly, a simple and easy-to-use cryptocurrency tax tool, to make your calculations simpler. If you’re not already a Koinly member, you can sign up here to get a 20% discount on paid plans.

Why Koinly?

Koinly is an intuitive software platform managed by expert tax consultants. It calculates your cryptocurrency taxes by allowing you to pull in transactions from other platforms, like Newton, as well as wallets and exchanges. Koinly offers a variety of plans, whether you’re a newbie, hodler, or active trader.

How To Use Koinly With Newton

Not sure where to start? You’re definitely not the only one. Here’s some helpful information on calculating taxes for cryptocurrency transactions with Koinly and Newton.

How to calculate your cryptocurrency taxes

If you were to calculate your cryptocurrency taxes yourself, this is how you’d have to do it:

  1. Identify each taxable cryptocurrency transaction and the type of tax that applies.
  2. Calculate your cost basis using the Adjusted Cost Basis method and take into consideration the Superficial Loss Rule.
  3. Identify the fair market value in CAD of any cryptocurrency income on the day you received it.
  4. Calculate your subsequent capital gains and losses from each disposition.
  5. Calculate your net capital gain and loss for the financial year and your total income from cryptocurrency for the financial year.

PHEW. We’re sweatin’—are you sweatin’? If you’re not dead-set on this mind-mangling marathon, you can let Koinly do all the heavy lifting for you. Here’s how:

  1. Connect all your cryptocurrency wallets, exchanges, and blockchains with Koinly using an API or CSV file. Then, you can connect your Newton transactions by exporting your Newton transaction history in a CSV file and uploading it directly to Koinly.
  2. Grab a coffee (or a matcha, if that’s your jam)—and let Koinly do its thing.
  3. Download your cryptocurrency tax report and file your cryptocurrency taxes as part of your annual tax return. That’s all, folks!

How to file your cryptocurrency taxes

If you hold any cryptocurrencies, you’re required to file your cryptocurrency taxes as part of your annual income tax return. The deadline for filing your 2021 tax return, including cryptocurrency taxes, is May 2, 2022.

Exactly how to file depends on how you prefer to file. Some prefer hiring an accountant, and some may use tax app like TurboTax. If you’re really old school, maybe you file by post.

  1. If you file with an accountant, you can simply hand over your Complete Tax Report from Koinly, or give them access to your account to let them download what they need themselves.
  2. If you file using a tax app like TurboTax, download your Complete Tax Report and use the net capital gain, loss, and income totals to complete your online tax return.
  3. If you file by post, you need to report your cryptocurrency capital gains and losses on the Schedule 3 form, as well as your additional cryptocurrency income on the T1 General form. Alternatively, you can file both of these forms online using CRA's My Account.

Happy filing!

Want to sign up for Koinly?  Newton users get an exclusive discount on all Koinly plans.

Newton hereby expressly disclaims any and all express or implied warranties of any kind with respect to Koinly, its software and its service offerings.  Koinly and Newton have entered into a revenue-sharing partnership to provide a discount on paid plans.

No items found.

Newton Team

Follow Newton on LinkedIn
Follow Newton on YouTube
Follow Newton on LinkedIn
Follow Newton on Twitter

BACK TO BLOG
join our research group