It’s really hard to find a solid cryptocurrency tax calculator, but that’s what we’ve done here at ZenLedger. We take in all of your crypto trades, buys, sells, and transfers. We then use crypto tax algorithms that make sure you don’t overpay or get them maximum refund/ tax loss asset.
Saving you time and money is what we are all about.
We prepare for you:
-Tax loss harvesting
-Comprehensive audit and drill down accounting report
-Fincen 114 FBAR
How Our Crypto Tax Calculator Works
You get a ton of automation to my sure you crypto tax calculations and reports are correct.
If you made a coin to coin trade a couple years ago - that will be a pain to find the dollar value for yourself. Now if you had hundreds or thousands of trades, it becomes almost impossible without a rock solid crypto tax software working for you. You don’t want you or your accountant to do this by hand. It’s a huge headache and will drive you nuts.
Our software takes into account short and long term capital gains for you. This is important because you can overpay on your taxes if the holding period and cost basis of your transactions are off. We have special integrations with the top exchanges and wallets that import your transactions very quickly.
The reason you need software to get your crypto tax calculations correct is because things get complicated fast when you are trading coins. You have to track your cost basis (what you buy and sell crypto at), your profit and loss, and how long you held the coins for. You also have to track all this as you sell a portion of your holdings and move them in and out of wallets and exchanges. Our software will tie every trade together for you.
Many exchanges will incorrectly classify your transfer as sells and this will create unwanted taxable events for you. Our software will correct these errors for you.
We also make it easy for your CPA and you to work together. You can invite your accountant in and share what you need to so they can take care of your Crypto Taxes and Accounting for you.
The IRS has successfully sued Coinbase to get investor personal information. They have also awarded millions of dollars in contracts to companies to do blockchain analysis. And the IRS has repeatedly reminded tax payers that crypto capital gains are taxable. Other regulators care too.
Investors forget that a lot of exchanges are overseas and there is a reporting requirement when you have a certain amount of assets in overseas accounts. If you have more than $10,000 in overseas accounts, you have to fill out a Fincen 114 FBAR. Then if you have more than $50,000 in overseas accounts, you have to fill out FACTA. The penalties for not reporting are pretty stiff for both of these.
ZenLedger helps you here by checking what your assets are each week in the year to help you find your maximum value in each account. The tax software also identifies which accounts are overseas for you.