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Taxbit Consumer Platform Update

Taxbit Consumer Platform Update

Navigating Taxbit’s Consumer Platform Shutdown

Crypto investors are used to uncertainty and change, but it’s even more challenging when surprises come out of left field. The most recent ding came not from the markets but from TaxBit’s announcement that they are closing down their consumer platform for individual investors.

If you are affected by TaxBit’s decision, it probably feels stressful, especially with year-end approaching.

ZenLedger can help. We’re offering you a seamless transition to our user-friendly platform trusted by over 100,000 crypto investors. What’s more, former TaxBit clients will enjoy a 35% discount when they switch to ZenLedger for a limited time. Simply send an email to @[email protected] to redeem your discount!

Let’s take a closer look at how we can help you.

The ZenLedger Experience

You’ll notice a difference immediately when you switch from Taxbit to ZenLedger. Reliable consistency doesn’t have to mean a bare-bones experience for clients. We’ve created a full suite of benefits that you will enjoy as a ZenLedger client:

  • ZenLedger Dashboard: Import and consolidate your transaction history from exchanges, wallets, and crypto projects into your ZenLedger dashboard.
  • Top-notch Tools: We feature the most comprehensive cryptocurrency tax calculator on the market. Our meticulous and comprehensive system ensures the accounting of every transaction, delivering you peace of mind and precise reports.
  • Broad Integration: ZenLedger supports over 300 exchanges and wallets, ensuring you can easily import your transaction history, regardless of where you trade or store your cryptocurrencies.
  • Comprehensive Reporting: The software generates all the critical tax reports, including IRS Schedule 1, Schedule D Capital Gains and Losses, 8949 Sales, Mining and Staking Income, Audit Trail report, and even cryptocurrency donations and gifting.
  • Grand Unified Accounting: ZenLedger’s End-of-Year Valuation Report offers you the peace of mind to quickly review your transactions. The GUA provides a detailed summary of your transactions, allowing you to assess your tax liability and get a comprehensive overview of your holdings across multiple exchanges, wallets, self-transfers, and more in a straightforward spreadsheet.
  • Tax-Loss Harvesting: ZenLedger offers tax optimization tools, such as tax-loss harvesting, which can help you minimize your tax liability legally by leveraging the strategy of offsetting your capital gains with losses.
  • User-Friendly Interface: We realize you’re probably not a CPA. ZenLedger’s intuitive interface is built with our investor client base in mind, helping you navigate the software effortlessly.
  • Integration with IRS, TurboTax, and TaxAct Direct Integration: ZenLedger stands out with its seamless integration with popular online tax tools like TurboTax and TaxAct. You can file taxes for your entire portfolio, including your crypto holdings, in one place.
  • Premium Customer Support: All of our plans now feature premium customer support. Need help at 3 AM? Do you have a tax emergency? Our tax experts are on standby around the clock.
  • Affordable Pricing: ZenLedger offers several competitive pricing options, from free to full-service, making it accessible to almost all investors.

We serve over 100,000 clients and have tracked over $50B in holdings. We’ve already started welcoming many former Taxbit clients.. We invite you to come on over and check out the ZenLedger difference. 

Continuity Matters, Especially in Crypto

We’ve been in the crypto space since 2017. We know crypto investments have their own unique challenges. Here are a few reasons we want to ensure you have continuity of support:

  • Complexity: Bitcoin’s original vision of simplifying finance is long gone. Cryptocurrency transactions can be highly complex. With various types of tokens, exchanges, wallets, and trading strategies, manually tracking every transaction can be overwhelming and error-prone.
  • Volatility: Any investor in the crypto space knows that cryptocurrencies are known for their price volatility. The frequent price fluctuations make it challenging to determine the exact value of your holdings at any given time, which is crucial for accurate tax reporting.
  • Regulatory Changes: Cryptocurrency tax regulations are continually evolving. Staying up-to-date with these changes is daunting yet necessary to avoid potential legal issues.

Switch to ZenLedger Now, Avoid Hassles Later

We realize Taxbit’s decision probably feels stressful. And while it might be tempting to put off the decision to switch to ZenLedger, staying on top of your accounts is crucial to avoid anxiety on April 15 and beyond. That’s because tax regulations will change for crypto in the next couple of years at a minimum.

For example, President Biden’s proposed budget for the fiscal year 2024 introduces a change in the tax treatment of “wash sales” involving digital assets.

A wash sale happens when you sell securities at a loss and buy the same shares within 30 days before or after the sale date. The government enforces wash sale rules to prevent investors from creating a deductible loss for the purpose of offsetting gains with only a short interruption in owning the security.

Additional cryptocurrency-related provisions in the budget include alterations to mark-to-market tax regulations to encompass digital assets. A mark-to-market system imposes annual taxes on the change in an asset’s value year-over-year, as opposed to capital gains, which (as of now) are taxed only when the investor sells the asset. Finally, the proposed regulations include a disclosure mandate for U.S. citizens with substantial holdings in foreign digital asset accounts to report these holdings to the IRS.

While the above changes are not official, they give you an idea of the complex direction that crypto taxes are heading, with more oversight and compliance requirements.

Key Features to Look For in Crypto Tax Software

Filing crypto taxes involves a lot of complexity, so choosing a full-featured solution is essential. When selecting a crypto tax software, consider the following features:

  • Support for Multiple Exchanges and Wallets: Ensure the software supports all the exchanges and wallets you use, as this will make it easier to import your transaction history.
  • Real-time Data Integration: Look for software that integrates with popular crypto exchanges and provides real-time data synchronization.
  • Tax Reporting: The software should generate comprehensive tax reports, including capital gains, income, and transaction history reports.
  • Tax Optimization Tools: Some software offers tools to help legally minimize your tax liability.
  • User-Friendly Interface: A user-friendly interface makes navigating and using the software easier.
  • Security: Ensure the software has robust security measures to protect sensitive financial data.
  • Customer Support: Excellent customer support can be invaluable if you encounter any issues while using the software.
  • Cost: Consider the pricing structure, including whether it offers a free trial or a money-back guarantee.

Crypto taxes are daunting because the detail required for tax reporting is overwhelming if you have more than just a few transactions. Not to mention, the rules are still changing from year to year. Be sure you have the right partner in your corner that offers the features you need.

Make the Switch from Taxbit to Zenledger today!

Crypto is here to stay – and, less exciting, so are taxes. The good news for ZenLedger clients is we are here to stay, too! We are here for the long haul. Are you ready to make the switch? We will help you make this transition as seamless as possible. We are here to make this super easy for you – simply send us an email at [email protected] to redeem your discount.

This material has been prepared for informational purposes only and should not be interpreted as professional or legal advice. Please seek independent legal, financial, tax, or other advice specific to your particular situation.