ZenLedger Cryptocurrency and NFT Tax Software Review

Lucky Trader StaffLucky Trader Staff
ZenLedger Cryptocurrency and NFT Tax Software Review

Cryptocurrency and NFT taxes are complicated and confusing. Fortunately, there are plenty of great third party software providers, like ZenLedger, to help make it easier to track down and document all of your transactions across multiple wallets and exchanges.

Below, we’ll review ZenLedger, its product suite, and how it can help you when preparing and generating reports for gains or losses on cryptocurrencies or NFTs. 

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What Are the Pros and Cons of ZenLedger’s Crypto Tax Software? 

Pros

Cons

Free plan available 

Free plan can only track up to 25 transactions

Tax loss harvesting tools and unified accounting reports No refunds if you download files

Integration with Turbo Tax and access to tax professionals

400+ crypto exchanges supported, including 30+ DeFi Protocols

What Is ZenLedger? 

ZenLedger is a crypto tax software that supports integration with more than 400 exchanges, including more than 30 decentralized finance (DeFi) protocols. A newer option for crypto taxes, ZenLedger is providing its simple crypto tax services to more than 15,000 clients.

ZenLedger is considered one of the most user-friendly cryptocurrency tax preparation services with some of the fastest tools in the industry for cryptocurrency traders, investors, and accountants. The website supports multiple currencies and exchanges and has IRS-friendly integrations with multiple payment plan options. The personalized tax service provided by the platform facilitates collaborations with clients, tax attorneys, and CPAs.

What Is ZenLedger’s Crypto Tax Product? 

ZenLedger makes it easy for you to import historical transaction data using an API from cryptocurrency exchanges or via data upload onto the platform. The platform will compute your gains and losses and your amount of tax owed based on analysis of all the transactions on the cryptocurrency exchanges and wallets you've connected or uploaded data for. In the future, all tax calculations will automatically be updated whenever tax laws or regulations change.

Zenledger also allows for direct TurboTax integration so clients can easily transfer their final tax calculations and reports to TurboTax to file their taxes accordingly. 

ZenLedger's tax product also has a tax-loss harvesting feature to help users keep track of their unrealized capital losses and opportunities to reduce their effective capital gains. For more on tax-loss harvesting, refer to our "need to know" guide from the accountants at RKOTax. ZenLedger allows users to export a spreadsheet that provides a breakdown of each transaction and how the tax has been calculated.

Are you an accountant with lots of cryptocurrency and NFT clients? ZenLedger offers a CPA suite for certified public accountants, allowing them to collaborate with their clients that have traded cryptocurrencies, NFTs, or participated actively in DeFi. With the ZenLedger CPA suite,  CPAs can see an integrated overview of their clients’ portfolios, in a tidy manner that’s bound to reduce the workload.

How Much Does ZenLedger Cost? 

ZenLedger offers multiple tiers of subscription to make their product worthwhile for cryptocurrency and NFT users of various experience levels.  The software package's four plans are built with respect to the amount of transactions and the complexity of those transactions. For example, transactions including NFTs and DeFi protocols are not as simple as spot trades on cryptocurrency exchanges, therefore requiring a higher tier from the Zen Ledger tax suite. After making a purchase of a plan, a user will be able to access the reports forever, allowing them the flexibility to update or add transactions before printing and filing their tax forms.

Additionally, all plans hold a one year refund policy and the ability to include a personal tax professional at no-cost. If you do not have a personal tax professional, ZenLedger provides a handful of tax professionals that can help you prepare, amend, and file your tax return.  The four ZenLedger crypto tax plans and their details are listed below. 

Crypto Tax DIY Plans

ZenLedger’s Crypto Tax Software Plans vary in cost based on the needs of the user. Please refer to the section below to help determine which level is best for you. Personal product consulting is available at $150/hr as an add-on.

  • Free: $0 per year
    • Up to 25 transactions
    • No DeFi / Staking / NFTs
  • Starter: $49 per year
    • Up to 100 transactions
    • No DeFi / Staking / NFTs
  • Premium: $149 per year
    • Up to 5,000 transactions
    • Ability to integrate DeFi / Staking / NFTs
  • Executive: $399 per year
    • Unlimited transactions
    • Ability to integrate DeFi / Staking / NFTs

Tax Professional Prepared Plans

Regardless of the tiered plan chosen above, ZenLedger can connect you to a crypto tax professional to get your crypto and non-crypto taxes completed. In these plans, a tax professional takes complete control of the tax preparation and filing process, requiring little involvement from the user. Agreeing to use a ZenLedger tax professional provides users with a returns signed by a tax attorney, CPA, or enrolled agent. Both NFTs and DeFi transactions are supported with tax professional prepared plans.

  • Consultation: $195,
    • Users are able to schedule a confidential, 30-minute consultation with a tax attorney who specializes in cryptocurrencies.
  • Single-Year Tax Report: Starting at $2,500
    • Users can receive a complete cryptocurrency tax report, prepared entirely by a tax professional.
  • Multi-Year Tax Report: Starting at $4,500
    • Users can save 10 percent by agreeing to use a cryptocurrency tax professional for multiple years. Those who select this tier will have their taxes prepared by a professional for the next two tax years. 

How to Use ZenLedger

Using ZenLedger can be done in as few as three steps, making your tax preparation and filing much less stressful and time consuming. 

First, users are asked to import their transaction history from all years of trading across all exchanges and wallets. It's important to include all the historical trading data as well so that ZenLedger can appropriately calculate the cost basis for assets. As noted above, trading history can be imported via a downloaded CSV, or by connecting wallets or exchanges directly via API. After doing so, the platform will automatically calculate cost basis, fair market value, and gains/losses for your transaction history.

Step two asks users to review their transactions. ZenLedger has a custom-built resolution center that helps users flag transactions that are in need of further review. It is important to review all transactions to ensure an appropriate cost basis is applied and that your taxes are filed correctly! 

Lastly, after importing and reviewing, users can download all the necessary tax forms for inclusion in their state and federal tax returns. 

The following reports can be automatically generated from the ZenLedger system. A description of each report is listed below. 

  • IRS Form 8949
  • Schedule 1 & D
  • Fincen 114 // FBAR
  • Tax-Loss Harvesting
  • Grand Unified Accounting
  • TurboTax Online Direct Import

IRS Form 8949 is used to report capital gains and losses from your crypto, DeFI, and NFT investments. A Schedule 1 form is generated for the IRS to report income from sources other than wages, interest, and dividends. In this instance, Schedule 1 may include gains from yield farming or beyond. The Schedule D form is used to compute capital gains and losses incurred during the tax year.

A United States resident that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year. ZenLedger will alert you if your investments qualify you for this form.

ZenLedger’s tax-loss harvesting tool automatically analyzes your trade history and provides a list of tax savings opportunities to take advantage of before the annual December 31 deadline for tax reporting.

ZenLedger's "Grand Unified Accounting" allows you to see your entire transaction history across all of your wallets and exchanges in one easy-to-read spreadsheet. 

For more on using ZenLedger, refer to the company's "How To" video. 

Lucky Trader’s ZenLedger Review Conclusion 

ZenLedger makes it quick and easy to file complicated cryptocurrency and NFT tax returns. They can connect you with tax professionals who are experienced in the field and give you peace of mind that your reporting is done correctly. Plus, ZenLedger's tax-loss harvesting tools are an added bonus that can assist users in reducing their potential losses. 

Sign up today to take care of your tax returns for 2021 without spending hours manually finding and calculating your tax burden. 

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For more crypto tax software reviews, please see our TokenTax review

Do you still have questions about cryptocurrency and NFT tax obligations? Our friends at RKO Tax documented seven key things users should know before the end of the 2021 tax year.

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