Crypto tax calculation platform Koinly added Terra (LUNA) wallet support to simplify tax calculation for LUNA holders as the Canadian tax filing deadline approaches.
Tony Dhanjal, head of tax at Koinly, said that LUNA support has been requested by many Koinly users and that with the integration, LUNA users have a “way to accurately track and record their transactions to help meet their tax obligations.”
Calculating crypto tax is easy when a user’s crypto affairs are easy. However, Dhanjal told Cointelegraph that “the average crypto investor is connected to 3 to 5 exchanges, wallets or blockchains.” Because of this, calculating taxes from these sources is very difficult and the risks of error are high. This is why Dhanjal recommends using a simple crypto tax calculation tool.
Apart from that, Dhanjal stresses the importance of paying crypto taxes. Although the process varies, most countries require crypto tax to be reported. The tax expert encourages people to not only pay their crypto taxes, but any other tax that they are liable for as an individual or business. Dhanjal explained this:
“Ignorance is not a valid excuse and there may be a fine line between it and illegal tax evasion […] The penalties for tax evasion can be severe, not to mention the reputational and other damage it could cause to you or your business.”
Related: Russia includes crypto in its tax legislation: This is what the rules could look like
In a Cointelegraph interview, EY crypto tax chief Thomas Shea reminded that buying crypto with fiat or unrealized gains is not a taxable event. Shea also said the same is true for non-fungible tokens.
Meanwhile, India-based crypto projects recently shared plans to move to more crypto-friendly jurisdictions as India’s crypto tax law imposes a 30% crypto tax on holding and transferring digital assets.
https://cointelegraph.com/news/crypto-tax-calculator-koinly-integrates-terra-into-its-platform Crypto tax calculator Koinly integrates Terra into its platform