#1 CRYPTOCURRENCY TAX SOFTWARE

There is no way that you can avoid paying crypto taxes to the IRS. However, you can minimize your tax obligations in a few ways. If your losses outweigh your gains, you can offset $3,000 of income, as well as take advantage of the lack of wash sale rule using tax-loss harvesting.

The rate of tax on your crypto profits depends on two crucial factors: the holding period of the assets and income brackets. Based on the holding period, crypto gains can be of two types. Short-term capital gains taxes, where assets are held less than a year and the rates range from 10% to 37%. Next are long-term capital gains taxes, in which the assets are held for over a year before selling them. In this case, the rate of taxes ranges from 0% to 20%, depending on your income.

Cryptocurrency is taxed the same way as property. So whenever you’re disposing of an asset for another asset, you’ll be liable to pay taxes, based on the transaction that you carry out. Your transaction can be categorized into two types of taxable events: capital gains taxes and income taxes. And again, there are some transactions that are tax-free. So, depending on the transaction you’ll have to report your crypto gains to the IRS.

Crypto tax software helps you by tracking, managing, and calculating the gains or losses on your crypto transactions. Your funds are not accessible through crypto tax software, they are read-only, so this keeps your assets safe from hacks or theft.

ZenLedger is the best crypto tax software. You can not only generate your crypto tax reports but also track your asset portfolio. And not just that, one can easily contact customer support to help with any questions. ZenLedger currently supports over 400+ exchanges, 7000 token types, 20+ DeFi protocols, ERC-721 NFTs and all wallets. We are also racing to integrate additional exchanges, wallets, blockchains and protocols daily, and will soon have support for more NFT standards.