Cryptocurrency Tax Software Integrates With TurboTax to Ease Crypto Tax Filing
Cryptocurrency tax software product ZenLedger has become the most recent addition to TurboTax’s expanding support for cryptocurrency tax resources. Cryptocurrency tax services have been increasing in prominence as investors seek to avoid the ire of the IRS following the integration of blockchain analysis tools with the tax-collecting agency and revelations of severe underreporting in crypto taxes last year.
ZenLedger has emerged as one of the leaders in the space, providing a highly practical service for aggregating and filtering crypto transactions from various exchanges and wallet providers. The transactions and trades are subsequently curated and migrated into the appropriate tax documentation (i.e., forms 8949 and Schedule D) for filing by a professional CPA.
Filing taxes is a tedious process that nobody enjoys, and submitting cryptocurrency taxes can become even more convoluted. Fortunately, ZenLedger provides an intuitive service designed to facilitate a much more seamless tax filing process.
Tackling a Fragmented and Complicated Landscape
The cryptocurrency exchange landscape is highly fragmented with multiple exchanges in numerous jurisdictions often differing in policies regarding listings, withdrawals, deposits, and fiat pairings. As a result, traders are left grappling with the immense complexity of different cryptocurrency protocols existing within disparate exchange environments from around the world.
ZenLedger seeks to address this problem by supporting all of the major exchanges in the world such as Coinbase, Binance, Kraken, Bitfinex, and Poloniex. The software product subsequently imports all transaction histories from the exchanges that different users have been trading on, and even can plug into APIs and third-party wallet providers. The software also supports multiple fiat currencies including the US Dollar, Euro, and British Pound.
Once a user’s cryptocurrency transactions are imported, they are aggregated, and useful documents such as income reports, capital gains reports, donation reports, and closing reports are produced. CPA’s can subsequently file the provisioned documents with ease, or the user can go through the ZenLedger portion of TurboTax’s cryptocurrency section.
The ZenLedger team is comprised of professionals hailing from backgrounds in technology, finance, and accounting. Their proficiency from multiple relevant industries has positioned them well to provide one of the leading cryptocurrency tax software products — processing more than $1 billion in transactions for their customer base.
Coinbase is a digital currency exchange headquartered in San Francisco, California.