Capital Gains Tax Confusion | Users Report Discrepancies in Koinly Calculations
Edited By
Carlos Mendoza
A wave of confusion has hit the crypto community as users report unexpected results from Koinly's calculations regarding capital gains tax. One user, who bought £7,000 in Bitcoin in 2022 and sold it for £14,000 in the tax year 2024/2025, is puzzled over a reported gain of only £500, rather than the anticipated £7,000.
Context of the Confusion
The user utilized Koinly to sync their transactions but found the output baffling. Many people on various forums echo similar sentiments about Koinly's accuracy, especially regarding UK tax rules.
Common Themes from Discussions
Alternative Platforms: People are suggesting switching to other services like Recap. "Recap is way better. It’s built by people in the UK with a focus on the UK unlike Koinly," noted one commenter, stressing the benefits of using local tax tools.
Potential Errors in Transaction Tracking: There are concerns that Koinly might misinterpret movements between wallets as disposals. One user stated, "You need to analyze the transactions in Koinly and make sure any movements between wallets have been understood correctly."
Questionable Accuracy of Reports: Observers are skeptical about Koinly’s accuracy. "Did you sell the £14,000 and buy it back again within 30 days?" raises an important point about matching rules and reporting methods.
User Sentiments
The overall sentiment ranges from frustration to caution among users. Many express dissatisfaction with Koinly's customer service and accuracy, urging others to consider alternatives.
"Just send the Koinly document and let them HMRC sort it if they can be bothered," one frustrated user remarked.
Key Takeaways
💬 Many users report inaccuracies with Koinly regarding UK tax laws.
👥 Alternatives like Recap are gaining traction among UK residents.
📊 Users are advised to verify transaction data in Koinly before submission.
As the tax season approaches, will Koinly address user concerns, or will confusion continue to cloud the crypto community?
For further information, visit relevant forums where people share their experiences and insights on navigating cryptocurrency taxes effectively.