Koinly has integrated Terra into its platform, this will provide LUNA users a way to accurately track and record their transactions to meet with tax obligations.
As the deadline for filing Canadian tax returns approaches, cryptocurrency tax computation portal Koinly has added Terra (LUNA) wallet functionality to make tax calculation easy for LUNA holders.
Many Koinly customers have sought LUNA support, and with the connection, LUNA users will have a “means to precisely manage and record their transactions to meet their tax requirements,” according to Tony Dhanjal, Koinly’s head of tax.
If a user’s crypto affairs are basic, calculating the crypto tax is simple. “The average crypto investor is connected to 3 to 5 exchanges, wallets, or blockchains,” Dhanjal told Cointelegraph.
As a result, calculating taxes using these sources is extremely complicated, and the chances of making an error are significant. This is why Dhanjal suggests using a basic cryptocurrency tax calculator.
Dhanjal also underlines the significance of paying crypto taxes. Most jurisdictions require crypto tax to be declared, albeit the process varies. The tax expert advises clients to pay not only their crypto taxes but any other taxes they owe as an individual or a company. According to Dhanjal,
“Ignorance is not a valid excuse, and there could be a fine line between this and tax evasion, which is illegal […] The penalties for tax evasion can be severe, not to mention the reputational and other damage to you or your business, this could cause.”
Thomas Shea, a crypto tax expert at EY, warned people in an interview that buying bitcoin with fiat money or any unrealized gains are not taxable events. Shea also stated that nonfungible tokens are the same.
Meanwhile, due to India’s crypto tax law, which imposes a 30% crypto tax on storing and transferring digital assets, crypto projects operating in India recently announced plans to relocate to more crypto-friendly jurisdictions.
