Amid the approval of Bitcoin ETFs, the burgeoning surge in the cryptocurrency market, its global adoption, and tightening government policies, it is essential to understand crypto taxation and how various platforms and companies are offering solutions to crypto users.
Today, we will review ZenLedger, a popular crypto tax software, and overview how efficiently it addresses users' pain points while adhering to crypto laws around the world.
ZenLedger goes beyond basic crypto accounting. It offers a comprehensive suite of features that work seamlessly with various DeFi platforms. This gives users control and flexibility, making managing DeFi taxes a breeze.
This article dives into the functions, key features, working, and pricing of ZenLedger.
What is ZenLedger?
ZenLedger is a leading crypto tax software platform designed to streamline the tax reporting process for individual investors and tax professionals alike. The platform was launched by Patrick Larsen, Daniel Escobar, Drew Nordstrom JD, Bryan Starbuck, and Saqib Rasool in 2017 and has become a leading crypto tax software platform.
With over 400,000 users and integrations exceeding 400 exchanges and wallets, it provides solutions for both individual investors and tax professionals trying to navigate crypto tax reporting. ZenLedger has an estimated enterprise valuation of 60-90 million US dollars (est. May 2022)
Functions of ZenLedger
ZenLedger operates with a user-friendly interface that seamlessly integrates with various crypto exchanges and wallets.
The functionalities of ZenLedger are:
Account Integration
The platform offers a robust import system that connects with a huge network of exchanges and wallets. Users can connect their accounts through secure APIs, eliminating the need for manual data entry.
It currently supports over 400 integrations around popular exchanges like Coinbase, Binance, and Kraken, as well as a wide range of DeFi wallets like MetaMask and Trust Wallet.
Transaction Aggregation
ZenLedger automatically imports all historical transaction data once accounts are linked. This includes buys, sells, deposits, withdrawals, and even staking rewards.
Users can also upload CSV files directly for manual import, catering to transactions from unsupported platforms.
Tax Report Generation
ZenLedger offers a range of downloadable tax reports in PDF format, allowing users to manage their crypto tax filing easily. These reports include:
- IRS Form 8949: This form specifically tracks capital gains and losses from cryptocurrency sales.
- IRS Form 1040 Schedule D: This complete report summarizes the user's overall capital gains and losses for the year.
- IRS Form 8275: This form helps disclose specific positions users have claimed on their taxes.
- FBAR Report: This report is used to declare any foreign financial assets exceeding certain thresholds.
How Does ZenLedger Work?
Effortless Data Import
ZenLedger integrates with a vast network of popular digital wallets and exchanges, unlike traditional manual data entry. Start by connecting your accounts, and it will automatically track user activity and import all their transaction data. This includes buys, sells, deposits, withdrawals, and even rewards from mining, staking, and airdrops.
IRS-Ready Tax Forms at Your Fingertips
The platform processes user-imported data and generates IRS-compatible tax forms. Filing taxes with ZenLedger is as simple as using any other tax software, but it has the added benefit of having crypto activity carefully tracked and reported.
Constant Evolution
ZenLedger isn't just for basic crypto transactions. Their team is constantly expanding its reach to support new wallets, exchanges, and even diverse transaction types like gifts and crypto spending. This ensures a comprehensive solution that adapts to the evolving crypto landscape.
With its's ongoing development, users can be assured that their crypto tax needs are always met. New features and integrations are constantly being added, positioning them as one of the most comprehensive crypto tax solutions on the market.
How to Sign up To ZenLedger?
Step 1: Visit the ZenLedger Website
Open your web browser and navigate to the ZenLedger website.
Step 2: Create a New Account
Locate the sign-up section on the ZenLedger homepage. You'll typically find this in the top navigation bar or a prominent call-to-action (CTA) button.
Step 3: Verify Your Email Address
Once you enter your email address, ZenLedger will send a verification email. Check your inbox and locate the email from the company. Click on the verification link provided in the email to activate your account.
Step 4: Access Your ZenLedger Dashboard
Upon successful verification, you'll be redirected to your dashboard. This serves as your central hub for managing all crypto tax needs.
Key Features
Minimize Your Tax Burden
Notably, the tool automatically identifies crypto or NFT holdings that have reduced value since purchase. Users can sell these at a loss to offset capital gains and potentially reduce their overall tax liability. This is a valuable tool for any crypto investor seeking to minimize their tax bill.
Track Your Crypto Performance
Users can gain instant insights into your crypto holdings with ZenLedger's portfolio tracker. View real-time values, gains, and losses, allowing you to monitor your investment performance effectively.
Seamless Tax Filing
Tax filing can be Streamlined with its seamless TurboTax integration. Users can import their tax data into TurboTax for confident and efficient tax filing.
Enhanced Tax Recordkeeping
Audit reports are generated throughout the year and are detailed, outlining all your crypto transactions. This ensures accurate and up-to-date tax records for both tax professionals and investors.
ZenLedger Pricing
The company offers various tiered pricing structures for different investor profiles. Here are the three plans and their key features:
Silver Plan
This entry-level plan at $49.00/year is ideal for beginners with limited crypto knowledge and activity. It supports up to 100 transactions and allows users to connect an unlimited number of wallets, perfect for managing basic Bitcoin or Ethereum holdings.
Gold Plan
The gold plan is the most popular pricing plan, priced at $149.00/year, and caters to a wider range of investors with up to 5,000 transactions. It expands functionality to include DeFi support, staking, and NFT management, making it an ideal solution for those venturing beyond basic crypto assets.
Platinum Plan
For users who are more active investors or trade frequently, the Platinum plan at $399.00/year scales up the transaction limit to 15,000 while offering the same features as the Gold plan. This provides extra room for those with a larger portfolio or higher trading volume.
Additionally, it's the only plan that includes one hour of dedicated customer support from a ZenLedger representative, offering an extra layer of personalized assistance.
Conclusion
Finally, ZenLedger simplifies cryptocurrency management for users of all levels. Its intuitive interface makes tracking assets and transactions easy. The platform is constantly evolving, with the ZenLedger team actively adding new features and improvements.
Additionally, ZenLedger offers multiple pricing plans, allowing users to choose the functionality that best suits their needs.
