ZenLedger Review: Is This Taxing Platform Safe and Secure?

ZenLedger Logo

Name: ZenLedger

Description: ZenLedger is used by cryptocurrency investors to review their portfolios, make profit and loss statements, file taxes, and dodge IRS checks. If software like ZenLedger can save you time while also assisting you inappropriately representing your taxes, it’s well worth the investment. ZenLedger produces a unique Google spreadsheet for your account to assist you with the tax-loss collection and lowering the amount you owe the IRS. The only drawback is that it only operates in the U.S.

Currency: $

Author: Chris

Overall
4.8
  • User Interface
  • Customer Support
  • Security
  • Integration

Is ZenLedger Secure and Safe?

Because you never reveal your private wallet keys when linking your exchanges and wallets, ZenLedger is safe and secure. ZenLedger also offers read-only access to your transactions.ZenLedger also claims to encrypt consumer data and to prevent collecting personally-identifying information.

Pros

  • A variety of exchange and wallet connections are available, as well as limited DeFi functionality.
  • Tax-loss harvesting might assist you in saving money while submitting your taxes.
  • Tax preparation and consulting services are provided for a fee.
  • Free Plan available for beginners.

Cons

  • DeFi functionality is only available in higher-priced plans.
  • It only supports localised tax paperwork for users in the United States

ZenLedger is regarded as one of the most user-friendly crypto tax computation platforms, with some of the industry’s quickest tools for crypto traders, investors, and accountants. ZenLedger also provides a premium service in which a tax specialist produces your cryptographic documents.

Let’s dig into ZenLedger Review to know more.

ZenLedger is one of the most well-known bitcoin tax software solutions available today. The firm was founded in 2017 and is based in Washington state. ZenLedger’s website claims that it attempts to “simplify DeFi, NFT, and crypto taxes for investors and tax experts.”

What is ZenLedger?

ZenLedger is the premier DeFi, NFT, and cryptocurrency tax administration and accounting software. ZenLedger is a useful application for cryptocurrency fans who want to keep track of their bitcoin taxes. It also enables investors to keep track of all of their bitcoin assets in one location. ZenLedger can assist you in converting thousands of annual transactions into a single piece of tax return data. The benefit of utilizing ZenLedger, like traditional tax software, is that it incorporates all crypto transactions and performance, so you get a correct image when you pay your taxes.

ZenLedger Logo

Whether you have capital gains from cryptocurrency trading or wish to balance your taxes by charging tax losses, software like ZenLedger’s tax capabilities are quite handy. The IRS began considering virtual currencies as property in 2014. This implies that anybody who works with cryptocurrencies must think about the tax ramifications. This is especially true if you trade frequently or earn extra money from sources such as bitcoin mining.

Features 

The important features of ZenLedger include the ability to input mining income/expenses/margin from different exchanges, multi-year support, and the ability to compute tax rates and years for several countries (US, Canada, UK, Germany, Australia, etc.), downloadable IRS documents, bitcoin trading support, and more.

Zendleger Integration

ZenLedger is cryptocurrency software that integrates with over 400 exchanges, including over 30 decentralized finance (DeFi) platforms.

The tax software connects to cryptocurrency exchanges, imports transactions, and generates localized tax documents including Schedule D, FBAR, and 8949.

Many exchanges are supported by ZenLedger, with which you may connect and import transactions. After you’ve connected the exchange, you’ll be able to produce your first tax form in ZenLedger. In Zenledger, you may rapidly prepare reports like form filling and then download them as a zip file.

Zenledger also supports direct connectivity with several software allowing clients to effortlessly submit final tax computations and reports to software for accurate tax filing. 

ZenLedge Exchange Integration

Tax Support

When it comes to handling crypto taxes, ZenLedger is another popular option for crypto traders, ZenLedger is designed for folks who are new to cryptocurrencies and are unfamiliar with cryptocurrency taxation. The fact that ZenLedger provides downloadable tax reports is the major reason you should consider it.

ZenLedger is a cryptocurrency tax calculator that takes all of your trading data (profit and revenue) and prepares your tax forms in the form of 8949, Schedule D, FinCen114, and FBAR when linked to your exchanges and trading wallets. Overall, ZenLedger enables you to reduce time and increase accuracy when displaying your coins. Finally, if you require assistance, with crypto taxes or regular trading, software like ZenLedger is worth it. 

Unified Accounting

If you want your taxes paid for you, ZenLedger has worked with a network of cryptocurrency tax specialists that can handle your account instead of importing all of your data yourself. 

Zenledger distinguishes itself from its competitors by providing complete tax preparation tailored to your specific needs. For the majority of the tax documents necessary for bitcoin reporting, you may use ZenLedger to create them yourself.

Because ZenLedger connects with TurboTax, you can import all of your transaction information into TurboTax if you file your own taxes. ZenLedger crypto tax computation software may also be linked to a CPA to ensure optimum compliance. ZenLedger allows customers to export a spreadsheet with a breakdown of each transaction and how taxes are calculated.

Tax Loss Collecting

ZenLedgers tax solutions also provide a tax loss collecting tool that allows customers to track unrealized capital losses as well as chances to lower actual capital gains. Furthermore, ZenLedger’s tax loss collecting tool is an extra bonus that assists users in reducing possible losses. Access ZenLedger CoinTracking, like other cryptocurrency tax software in the market, offers sophisticated reporting to clients.

How to Use ZedLeger?

You may sign up for a ZenLedger account using your email address or by linking through Coinbase or Google. The entire signup procedure can be completed in less than a minute or two.

After you sign up, you must link a wallet, exchange, or Defi protocol to your ZenLedger account so that transaction data may be imported. If you don’t wish to connect ZenLedger to any accounts, you may manually enter transaction information using a CSV or the manual input tool. The primary reason most individuals join up for ZenLedger is to request assistance with their taxes.

Pricing

ZenLedger provides a variety of account options for their crypto tax accounting software in order to satisfy a diverse range of crypto customers. The number of encrypted transactions that may be imported into ZenLedger accounting software is restricted to 25, however free users can still upload all tax papers and even integrate their encrypted tax returns into TurboTax. 

So the plans are mentioned below-

  • The Executive package is $399 per fiscal year and includes 10,000 transactions, unlimited wallets/exchanges, priority support, custom reports, import verification and help, and access to all other Koinly services. 
  • The premium package is $149 has 5000 transaction per year. This platform assures that you do not pay any additional costs whether you are a day trader, cryptocurrency owner, or miner.
  • The Starter plan is $49 per year however it is restricted to 100 transactions per year.
  • Finally, it should be emphasized that the entry-level account for someone who wants their taxes prepared by a licensed expert does not have many bells and whistles it is free of cost.
ZenLedger Pricing Plans

Customer service

For starters, ZenLedger’s customer service is impossible to surpass, as it is open to all users on the platform, including those who do not pay for an account. Furthermore, the ability for customers to obtain their entire tax reports with a free account is something that is rarely seen with these types of programs.

The extensive integration with various DeFi apps is also beneficial to people who have been involved in the bitcoin area for a long time but are only now dabbling with Ethereum and various DeFi applications. On their website, there is a chat feature where you can ask any question and get a response practically instantaneously. Another option for getting help is to use the usual email ticket system.

ZenLedger Security

The good news for ZenLedger users is that the firm only has read-only access to your wallet and exchange data and never requests your crypto private keys.

If you wish to safeguard your account even further, the ZenLedger website is encrypted and supports two-factor authentication.

ZenLedger adheres to all cyber security industry best practices and has never experienced a data breach in its existence. The most crucial point to understand is that Zenledger does not have access to your cash; instead, it just has viewing rights on your exchanges in order to collect the necessary data. Nonetheless, your Zenledger account may be safeguarded with a 2FA layer of security, all data is encrypted, and you can enable email alerts for login and other account activity.

Conclusion On ZenLedger Review

Based on an examination of all transactions on cryptocurrency exchanges and wallets for which you have linked or uploaded data, the platform will determine profit and loss, as well as the amount of taxes payable. You may use this program to track your bitcoin or any cryptocurrency trades and earnings in addition to calculating taxes. 

Cryptocurrency fans can quickly import all of their transaction data, compute taxes, and prepare tax forms with a few clicks. ZenLedger allows you to effortlessly prepare bitcoin, ETH, & etc. tax records and monitor your cryptocurrency wallet.

Hence, Many people praise ZenLedger as one of the quickest and most convenient tax solutions for cryptocurrency traders, investors, and accountants. Many people believe ZenLedger is one of the quickest and most convenient tax solutions for cryptocurrency traders, investors, and accountants.

FAQ’s

Which countries are backed?

At the moment, ZenLedger only explicitly supports tax documents in the United States. While users in other countries can benefit from ZenLedger’s ability to calculate how much taxes are owed in other jurisdictions, the documents available for download only apply to those who are reporting their crypto activities to the Internal Revenue Service in the United States.However, ZenLedger supports over 140 different fiat currencies, and any jurisdiction that employs the HIFO, FIFO, or LIFO techniques.

What are limiting factors of ZenLedger?

The drawback of ZenLedger is that lower-tier accounts may not have access to tools for calculating taxes on more complex crypto trading activities like DeFi participation, staking, and margin trading. Even if you are new to these tools outside of basic crypto trading, unless you are prepared to pay for a Premium or Executive account, you will not be able to receive the essential support for computing your crypto taxes.

About Chris Fryer

I'm Chris, A fintech & technical analysis expert. I started my journey in 2012 & entered the Cryptocurrency Industry in 2015. Currently, I'm helping people by sharing my knowledge related to finance tools on the web. My expertise is in investing & technical analysis for stocks, and crypto & I have a good experience in TradingView analysis. I don't give any financial advice, I only publish reviews & guides of tools and platforms.

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