Have you been tracking your token sales and purchases? Well, if you are an American citizen, then you could owe the IRS tax on your crypto investments. The IRS requires all citizens in America to pay the capital gains tax on both domestic and international income. The taxman has even contracted several companies to scour through the blockchain market and locate crypto holders who are evading tax payments. Fortunately, ZenLedger is a tax platform that can help you keep track of your token deals and allow you to file your taxes conveniently.
Since most people use several exchanges when trading in cryptocurrencies, it can become very laborious to track all these transactions. The best option is to use a dedicated platform like ZenLedger that allows you to import all your crypto data from most exchanges to create one document that will help you with your tax filing needs. ZenLedger represents one of the best crypto tax solutions existing today with flexible plans starting with a free account to other paid options that include $99 or $199 per every tax year.
ZenLedger allows you to import all your cryptocurrency transactions across all crypto exchanges easily. You can then use this information to calculate your income and profits. Most importantly, the data will be critical for auto-filling various tax forms such as Schedule D, 8949, FBAR and FinCen114. Here are some of the primary features of the ZenLedger platform:
Supports All Exchanges and All Currencies:
ZenLedger is racing to ensure full compatibility with all exchanges including Coinbase, Bittrex, Binance, GDAX, Poloniex, Gemini and Kucoin and many other exchanges. Also, the platform will support nearly all crypto coins from BTC and BCH to XRP and LTC among many others, including fiat currencies.
Quickly Prepare Useful Documents:
With the ZenLedger importation feature, it is possible to import all your transactions from any exchange and use that data to make various valuable documents. Some of the reports that you can create with the imported data include income reports, closing reports, and capital gains reports among others.
The ZenLedger platform will generate profit and loss statements that you and your CPA can use to make sure you file the right taxes. Whether you work as a day trader, crypto holder or a miner, this platform will guarantee that you never over- or under-pay in taxes. Also, ZenLedger is not just for Americans as it can help any client in the world currently using numerous ledgers and wants those separate transactions easily cleaned up and aggregated into a more standardized, readable format.
Defining Taxable Events
Taxable events in the cryptocurrency world refer to when a crypto coin is sold for cash or another altcoin and also when the crypto-coin is used for buying services or goods. It is worth noting that transfer of currency between different exchanges does not constitute as taxable events. The tax will only be required if you are converting from one cryptocurrency to another.
To clarify, ZenLedger will not do your taxes on your behalf. Instead, the system helps to pool all your crypto data together in one place, which makes it easier when filing taxes. The app is however invaluable in the tax filing process as it quickly aggregates data across your various ledgers and presents a thorough report in a standardized format.