Get Your Crypto Tax Questions Answered

Learn more about ZenLedger and crypto taxes

All FAQ Articles Available in Our Robust Online Support Center

Frequently Asked Crypto Tax Questions

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Do I really have to pay taxes on crypto investments?

Yes, if you are a United States citizen, cryptocurrency transactions are taxable and are treated as property. For 2020 tax filings the IRS has even added this question to the top of Form 1040. “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?” It is imperative that you file cryptocurrency taxes to stay compliant.

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Am I going to get audited?

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.

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What is a taxable event?

A taxable event is typically a sale or disposition of an asset. In crypto, a taxable event occurs when a coin is traded for cash (also known as fiat) or another cryptocurrency, or when cryptocurrency is used to purchase goods or services. Transferring currency from one exchange to another (i.e., moving BTC from Coinbase to Bittrex) is not a taxable event. Converting one currency to another (BTC to ETH to an ICO) is considered a taxable event. It’s also now forbidden to try to 1031 exchange your ICO holdings. Consult your tax professional as you make these decisions to decide how aggressive or conservative you wish to be.

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Can ZenLedger do my taxes for me?

We don’t do your taxes, but we aggregate all of your exchange and wallet data together to make it easy for you or your tax professional to generate the tax forms you need. Your tax professional can even view and edit your account in ZenLedger at no cost. We also offer tax professional plans where a ZenLedger preferred tax professional will handle your crypto and non-crypto taxes from start to finish.

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What exchanges and coins and currencies are you currently integrated with? Will you add more?

ZenLedger current supports over 400+ exchanges, 7000 token types, 20+ DeFi protocols and all wallets. We are also racing to integrate additional exchanges, wallets, blockchains and protocols daily, and will soon have support for NFTs. ZenLedger is global and can be used by anyone in the world that is using multiple ledgers and would like those transactions easily aggregated and cleaned up into a readable format. Whether it is US Dollars, Euro, Japanese Yen, British Pound, we are working to support all global currencies and will soon support global tax forms as well.

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I have Monero or Dash or ZCash and I want to ensure I’m in compliance. How do I do that?

We always advise investors to import all transactions and tokens for full compliance and tax accuracy.

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How do I change my email, password, notifications, payment plan, and other account settings?

You can make changes to your account settings by logging in and clicking on My Account in the upper right corner of the screen. Once you are in the account, you can make changes to the following: Profile Settings | Email Address | Password | Your Tax Answers | Notifications | Plans | Payment Information | Billing History | Other (Delete Account) | Clear All Transaction

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How can I get support or ask questions?

We are always delighted to hear from you! You can start a conversation with us anytime by using our chat service. It is a green round icon located at the bottom right of the screen once you're logged in. You can also drop us an email at hello@zenledger.io or view help articles in our robust FAQ section.

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Simplifying DeFi and Cryptocurrency Taxes for Investors and Tax Professionals

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