Koinly Vs Zenledger, Taxes are assessed in the event that capital assets, like cryptos, are traded at an income. It doesn’t matter if you sell cryptocurrency in exchange for fiat currency (like dollars or euros) or trade it with other cryptocurrency (like Bitcoin for Ethereum or Ethereum for Litecoin) and utilize cryptocurrency to purchase items or services, mine crypto or buy or sell NFTs it is legally required to pay taxes for these transactions.
Some crypto-related activities don’t attract tax, however. In other words, you do not pay tax if you buy and keep your cryptocurrency, make a donation to a non-profit or charity organisation, give or receive cryptocurrency as a present, as well as transfer the cryptocurrency you own to someone else. Also you pay tax on cryptocurrency when you earn a profit through the cryptocurrency.
However you are a typical cryptocurrency trader, it could be difficult or take a significant amount of time to determine your tax. This is where taxation tools are available. We will look at two such tools: Koinly as well as ZenLedger, in this article.
What are tax-saving tools in crypto?
Many businesses offer the blockchain scanning software to find transactions between wallets regardless of whether you are using the exchange option or not and give you reports on the transactions you’ve performed across all of your wallets during the tax year. Tools such as Koinly and Zenledger permit you to keep track of cryptocurrency transactions and file taxes through connections to crypto-wallets and exchanges.
Koinly allows you to Koinly Koinly, you are able to automately monitor your exchanges and fees and consolidate your reports and then reconcile all the data from your exchanges and accounts in just a few clicks. The app provides advanced transaction filters that enable you to identify quickly the types of transactions that contributed to your profits and also provide notifications on the balance of your account. You have to sign up for any of the paid-for plans in order to download tax reports on cryptocurrency for no cost.
Also Read: FTX Vs Coinbase: Features, Fees and Security
Through ZenLedger it is possible to create any kind of report that include tax returns you’ll require to submit. You can access your wallet and view exchange transactions using a standard spreadsheet that covers all transactions. The company also provides you with experts who will help you with non-crypto tax, so that you can plan your plans that will cover both types of tax. Make use of ZenLedger’s free plan that covers as much as 25 transactions in case you’re not sure whether it’s the right choice suitable for you.
Koinly against Zenledger the countries that are supported by Zenledger.
Koinly is compatible with all countries that employ the term “Average Cost,” LIFO, FIFO, HIFO and more. to calculate gains such as USA, Estonia, Denmark, Malta, Canada, Ireland, Australia, Italy, UK, Finland, Germany, New Zealand, Norway, Lichtenstein, Czech Republic, Sweden, Luxembourg and 10 additional countries.
Zenledger has support for more than 140 fiat currencies. Additionally, the software for tax reporting can be utilized by any country that uses HIFO, FIFO, or LIFO. In the moment, Zenledger only supports tax documents within tax documents in the United States. People from other countries are able to decide how much tax is due using Zenledger. The platform only downloads documents from crypto users who report their crypto activities with IRS. Internal Revenue Service.
Koinly Vs Zenledger exchanges, and wallets
Koinly supports over 360 exchanges (including Australian exchanges like Coinspot, Coinjar, Swyftx, Independent Reserve, etc.), over 70 wallets, over 35 blockchains, and over 6000 cryptocurrencies. It allows users to find missing transactions and delete duplicate entries. They support DeFi, Margin, and Futures trading on all Koinly plans (including the free).
ZenLedger has support for over 400 exchanges for cryptocurrency, forty distinct blockchains and twenty DeFi projects. As per their site, ZenLedger can support more exchanges a streamlined way via APIs than other tax tracking software for crypto that is available. Here are a few of the most well-known exchanges that are supported by ZenLedger. ZenLedger program: Binance, Bittrex, Coinbase, HitBTC, Huobi, Kraken, KuCoin, Poloniex.
Koinly Vs Zenledger Other offered services (mining Staking, mining, DeFi, Liquidity providing, NFTs etc.)
ZenLedger supports NFTs and can help you calculate your taxes. When it comes to NFTs in Koinly, They’re getting the support added. So if you need to file urgently, you can follow these steps to manually add your NFT transactions in Koinly. Koinly makes the calculations for your proceeds, gains, or losses once you have added your NFT transaction(s).
Zenledger platform is popular among companies working in the DeFi sector. Additionally, Koinly makes DeFi services accessible, with plans that are free. ZenLedger has added Fantom on its platform to offer transaction kinds like Liquidity Pool, Staking, Zap Swap/Trade.
Koinly pricing vs Zenledger
Koinly pricing plans come with unlimited wallets/exchanges, tax reports, portfolio tracking, margin trades, and DeFi. It also includes essentials like Form 8949, TurboTax, international tax reports, a comprehensive audit report, and a live chat.
- The NEWBIE plan ($49 per tax year) is designed for those who are new to tax and comes with 100 transactions.
- The HODLER plan ($99 per tax year) includes 1,000 transactions.
- The TRADER program ($179 each tax year) comprises 3000 transaction as well as priority assistance.
- Pro plan ($279 each tax year) covers more than 10,000 transactions, as well as priority assistance.
Zenledger offers two plans: Crypto DIY plans as well as Tax Professional Plan Preparation.
- The plans for crypto DIY will provide premium support as well as the most detailed reports, such as Audit reports, taxes professionals access, HIFO/FIFO/LIFO and unlimited exchanges, cryptocurrency as income mining, donations or mining Airdrops and ICOs, tax-loss harvesting, FinCen/FBAR Aert and TurboTax tax integration. an individual product consultation at $150/hour if you request. There are four DIY crypto plans.
- The Free Plan – It includes 25 transactions, but without access to other services such as DeFi Staking, NFTs, or staking.
- The Starter Plan – At $49 per year. It comes with 100 transactions but without access to other services such as DeFi Staking, NFTs, or staking.
- The Premium Plan starts at $149 for the year. It comes with 5000 transactions and access to various services such as DeFi and staking as well as NFTs.
- The Executive Plan – at $399 per year, you get access to services such as DeFi Staking, NFTs, or staking and unlimited transactions
- Tax Professional-prepared Plans – ZenLedger presents you to a tax professional who can help you to get your non-crypto and crypto tax obligations accomplished efficiently and with security using the most cutting-edge tax strategies and tax returns that are completed by an accountant, tax lawyer CPA or an enrolled agent. Plans created by tax professionals are compatible with DeFi and NFTs. They have three sub-plans, which include:
- The consultation plan comes with 30 minutes of consultation for $195.
- The single-year price is $3500.
- Multi-year(two year) at $6500
Also Read: 5 Top Bitcoin Exchanges In the USA
It is best to use cryptocurrency tax software that keeps track of your cryptocurrency trades, cryptocurrency gains, losses, and taxes, in addition to generating tax forms. As a result, you can monitor each transaction and how much profit or loss you make.
As we’ve observed that both Koinly along with Zenledger made impressive advancements in tax reporting for crypto. Both are useful with their advantages as well as drawbacks. But, a slight advantage is awarded to Koinly due to the sheer number of countries they have partnered with.
Also Read: How to Buy Rocket Bunny Crypto
Is Koinly the most efficient software for tax preparation?
Yes. A reliable tax software for crypto such as Koinly provides you with a complete view of your investment on different platforms . It is also able to connect to your exchanges, wallets Blockchain addresses, exchanges and other services.
Are crypto tax software’s accuracy guaranteed?
Yes. Crypto tax software is simple to use and offers precise data. It works into TurboTax and TaxDirect however it also includes numerous cryptocurrency exchanges. It also works perfectly with the most well-known wallets.
Does Zenledger have a report to IRS
Yes. Zenledger’s tax software for crypto will make it simple for you by aggregating data from multiple exchanges, and calculating your tax and creating common IRS forms such as Form 8949 to declare the capital gain and loss arising from your cryptocurrency investments.
Tax calculation for crypto-to-crypto transactions
1. Calculate the profit you earn by selling cryptocurrency. If you are able to sell two Bitcoin for $50,000, deduct the cost you bought it for and transaction costs. The sum is referred to as the base.)
2. Find out if you have gained in the short or long term If you have held more than a year, you’re gaining an immediate gain. If you kept your cryptocurrency for longer and you’ve accumulated a long-term gain. The kind of gain you make determines the tax rate you pay.
3. Calculate your taxes – One of the most important aspect of making a decision on your crypto tax liability is whether you’ll have to pay them for either long or short-term gain. Short-term gains are contingent upon your tax bracket while long-term gains will have their own bracket.
It is also possible to use tools and software to speed up the process. Make sure you record all data accurately and ensure that all records are properly reconciled
Is Koinly be associated with the UK
Yes. Koinly helps citizens of the UK in calculating their capital gains from crypto. You can also create an income report that shows your earnings through Airdrops, Staking, Mining, Forks and more.
Is Koinly secure to connect to exchanges?
Koinly secures all data while during transit. SSL Labs’ test results indicate that their APIs as well as endpoints for applications only use SSL/TLS and receive the “A+” rating, meaning that they use only robust cypher suites as well as options such as Perfect Forward Secrecy as well as HSTS Additionally, they encrypt their data in transit.
Are airdrops, forks mining, and staking taxes?
If an airdrop occurs following an unfork, and you get a new cryptocurrency, you’ll be taxable in the year that you get that cryptocurrency. Staking and mining are also tax-deductible. Staking are tax deductible too.