How to Do Your Kraken Taxes?
Kraken is among the oldest Bitcoin exchanges, providing a diverse range of investment choices to individuals and organizations in over 200 countries. Kraken also accepts a number of fiat currencies, making crypto-to-fiat conversions simpler.
Institutions, corporations, and high-net-worth individuals can all benefit from Kraken's additional services. Futures are also available through Kraken, which has a web platform and two mobile apps dedicated to futures trading. Let’s find out more about how you can do your Kraken taxes and generate Kraken tax documents.
Kraken Tax Reporting
In the United States, cryptocurrency is regarded as a digital asset, and it is regulated by the IRS in the same way that stocks, shares, and other investment securities are.
Cryptocurrency gains are taxed, although not in a similar way as regular asset earnings. The way you got it (capital gain or income) and how long you held it influence your cryptocurrency taxes. Profits, losses, and earnings from crypto assets must all be reported on your tax returns.
Will Kraken Provide me with Tax Documents?
Apart from Kraken, many cryptocurrency investors use other exchanges, wallets, and platforms. They may perform extra trades on other exchanges or utilize self-custodial wallets in addition to trading on Kraken.
Kraken’s tax documents are limited to the Kraken platform itself, implying that transactions of other exchanges are not a part of the Kraken reporting. Kraken does not offer complete information if you use any other crypto exchanges, wallets, DeFi protocols, or other platforms.
Fortunately, there is another option for investors to appropriately submit their taxes. ZenLedger easily calculates your crypto taxes and also finds opportunities for you to save money and trade smarter. Let’s find out how to do your Kraken taxes with the help of ZenLedger.
Connecting Your Kraken To ZenLedger For Your Crypto Tax Documents
As one of the most comprehensive cryptocurrency tax software options on the market, we have import instructions for well over 400+ exchanges.
Within ZenLedger, on the Import Transactions page and Exchanges tab, select the Exchange you want to import. Then you'll see a table that outlines the possible methods. For many centralized exchanges, we support a direct API code import, while others may require a CSV import. Decentralized exchanges may require a wallet address.
To import your transactions from an exchange, simply navigate to the [Exchanges] tab of the [Imports] page. Select the exchange that you are looking to import, (Kraken, in this case) and instructions will be provided for that specific exchange!
The Bottom Line
Kraken's pricing and services make it an excellent alternative for crypto traders and investors, from novices to specialists, looking for a new exchange. Its low Kraken Pro fees, competitive staking rates, and futures markets are all winners. Despite this, some users have complained about severe account security issues, and the platform is not as user-friendly as alternatives.
- 97 supported cryptocurrencies
- Low fees
- High security with 2FA and email confirmation
- Air gapped cold storage
Kraken is a wonderful option for cryptocurrency trading and investment in general. Make sure you're aware of all the expenses and risks and take precautions to protect your account with two-factor authentication. If you do, buying and selling cryptocurrencies on Kraken should be a pleasant experience.