Oftentimes when tax season comes around, we find ourselves scrambling to file our taxes. Now with cryptocurrency and NFTs in the mix, tax season is even more hectic for everyone in the Web3 space. But, it doesn’t have to be.
Zenledger is here to help you. You can listen to the entire podcast episode below!
Zenledger is a crypto and NFT tax software that enables you to generate a report of all your Web3 transactions, as well as track your tax portfolio. Zenledger supports more than 400 exchanges, 7000 tokens, 20+ Defi protocols, ERC-721 NFTs, and most major wallets.
As the Web3 space continues to grow, Zenledger plans to grow with it. They aim to integrate more exchanges, wallets, blockchains, and protocols daily, as well as support more NFT standards.
Furthermore, if you are having any doubts about filing your own crypto and NFT related taxes, Zenledger offers their own preferred Professional Prepared Plans. This means Zenledger will set you up with one of their tax professionals to prepare both your crypto and non-crypto taxes.
If you are unsure whether or not you need a Professional Prepared Plan, you can also schedule a consultation with one of their tax professionals.
If you are someone who has participated in any Web3 related transactions in the past year, then you need to report those transactions to the IRS. In crypto, a taxable event occurs when a coin is traded for cash (fiat) or another cryptocurrency, and when crypto is used to purchase goods or services.
You can learn more about reporting your Web3 transactions by reading our beginner’s guide. Of course, it’s always best to consult your tax professional before making any decisions.
Zenledger is an easy-to-use data aggregator software that gathers all the data from your crypto exchanges and wallet addresses, which you will need when you file your taxes. Once you have entered all your info into Zenledger’s software, it will automatically produce a report that you can then use to file your taxes.
After reviewing your reports and ensuring accuracy, the final step is to generate your tax reports and file them. For each tax year, Zenledger will automatically generate the following reports:
These reports cover things like Additional Income and Adjustments to Income, Capital Gains and Losses, Sales, and other Dispositions.
Additionally, Zenledger’s Tax Loss Harvesting Tool provides you with a list of tax-saving opportunities to take advantage of.
With the reports generated from Zenledger, you can either take them to your own Tax Professional, or you can easily integrate the files with TurboTax if you prefer to do your own taxes.
Also, if you ever have any questions or are in need of assistance, Zenledger’s On-Demand Customer Service is available from 9 am to 9 pm EST, 7 days a week.
Zenledger is best suited for both individuals and tax professionals looking to report Web3 transactions to the IRS.
Considering Zenledger provides a report of all defi transactions, it doesn’t matter if you prefer to do your own taxes, have your own tax professional, or you are a tax professional, you can use Zenledger to gather all the tax information that’s required to file your crypto tax returns.
Overall, Zenledger is one of the best software you can use to file your Web3-related taxes. If you have traded cryptocurrency for cash (fiat) or another cryptocurrency, or if you have used crypto to purchased goods or services, then you will need to use software such as Zenledger to gather all your transaction data.
If you avoid filing your Web3 transactions to the IRS, you are exposing yourself to potentially hefty fines and other legal ramifications, in the event of an audit.
According to Zenledger, the IRS is actively targeting individuals who are using cryptocurrency for tax evasion or who are not paying their cryptocurrency capital gains for audits. By ensuring that you file and pay crypto taxes correctly, you can avoid fines and penalties in the event of an audit.
