Koinly vs Zenledger – Which Crypto Tax Calculator Is Better?

October 5, 2022

Koinly and Zenledger are both very popular crypto tax calculators with similar pricing and features. However, depending on your needs (Koinly fits better if you are a day trader, Zenledger is good for heavy DeFi user, both work great for NFT minters and traders etc.) either Koinly or Zenledger come out on top.

Let’s dig deeper into this comparison.

Taxes are imposed when capital assets, including cryptocurrencies, are sold at a profit. Whether you sell cryptocurrency for fiat money (like euros or dollars), trade cryptocurrency for other cryptocurrencies (like Bitcoin for Ethereum or Ethereum for Litecoin), use cryptocurrency to buy goods and services, mine crypto, or purchase and sell NFTs, you are required to pay taxes on such transactions.

Not all crypto activities incur tax, though. For example, you don’t get taxed if you buy and hold your cryptocurrency, donate cryptocurrency to a charity or non-profit organization, receive/give crypto as a gift, or transfer cryptocurrency to yourself. In other words, you pay cryptocurrency tax when you make a profit with it.

Most times, though, as a regular crypto trader, it might be hard or take a lot of time to calculate your tax. This is where crypto tax tools come in. We will compare two of them, Koinly and ZenLedger, in this article.

What you'll learn 👉

What are crypto tax tools?

Many companies offer blockchain scanning software that will detect transfers between wallets, regardless of whether you use an exchange or not, and provide you with a report on the transactions you made across all your wallets within a given tax year. Tools like Koinly and Zenledger allow you to track crypto transactions and file cryptocurrency taxes by connecting to exchanges and crypto-wallets.

With Koinly, you can automatically track your fees and exchanges, consolidate your report, and reconcile the information from your accounts and exchanges in a few clicks. This app offers advanced transaction filtering that allows you to quickly identify which transactions contributed the most to your gains and set notifications regarding your account balance. You must sign up for one of their paid plans to download the cryptocurrency tax reports for free.

With ZenLedger, you can generate all kinds of reports, including the tax returns you might need to file. You can easily view your wallet and exchange transactions standard spreadsheet encompassing all your transactions. The company can also provide you with professionals who can assist you with your non-crypto taxes, so you can prepare plans to cover both types of taxes. Take advantage of ZenLedger’s free plan, covering up to 25 transactions if you aren’t sure it’s for you.

Koinly vs Zenledger supported countries.

Koinly supports all countries that use Average Cost, LIFO, FIFO, HIFO, etc. for calculating gains like USA, Estonia, Denmark, Malta, Canada, Ireland, Australia, Italy, UK, Finland, Germany, New Zealand, Norway, Lichtenstein, Czech Republic, Sweden, Luxembourg, and 10 other countries.

Zenledger supports more than 140 different fiat currencies, and the crypto tax reporting app can be used by any country using HIFO, FIFO, or LIFO. Currently, Zenledger only has explicit support for tax documents in the United States. Users in other countries can determine how much taxes are owed using Zenledger. The platform downloads documents only from those reporting their crypto activity to the Internal Revenue Service.

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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 supports over 400 cryptocurrency exchanges, 40 different blockchains, and 20 DeFi projects. According to their official website, ZenLedger supports more exchanges in an automated manner via APIs than any other crypto tax tracking app on the market. Here are some of the more prominent exchanges supported by the ZenLedger software: Binance, Bittrex, Coinbase, HitBTC, Huobi, Kraken, KuCoin, Poloniex.

Koinly vs Zenledger – Other supported services (mining, staking, 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 viral among those operating in the DeFi space. Also, Koinly makes DeFi services available, including free plans. ZenLedger added Fantom to its platform to provide transaction types such as Liquidity Pool, Staking, Zap, Swap/Trade.

Koinly vs Zenledger pricing

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 for beginners and includes 100 transactions.
The HODLER plan ($99 per tax year) includes 1000 transactions.
TRADER plan ($179 per tax year) includes 3000 transactions and priority support.
PRO plan ($279 per tax year) includes over 10,000 transactions and priority support.

Zenledger has two plans: Crypto DIY plans and Tax Professional Prepared Plans.

The crypto DIY plans will give you premium support and all detailed report like audit reports, tax pro access, HIFO/FIFO/LIFO, unlimited exchanges, crypto as income, mining or donations, ICOs and Airdrops,tax-losses harvesting, FinCen/FBAR Aert, and TurboTax integration and also a personal product consulting for $150/hr if requested. There are four crypto DIY plans.
- The Free Plan – It includes 25 transactions without access to services like DeFi, staking or NFTs
- The Starter Plan – At $49 per year. It includes 100 transactions without access to services like DeFi, staking or NFTs.
- The Premium Plan – At $149 per year. It includes 5000 transactions with access to services like DeFi, staking or NFTs.
- The Executive Plan – At $399 per year with access to services like DeFi, staking or NFTs and unlimited transactions
Tax Professional Prepared Plans – ZenLedger introduces you to a crypto tax professional who helps you get your crypto and non-crypto taxes done efficiently and securely with the most innovative tax strategies and returns finalised by a tax attorney CPA or enrolled agent. Plans prepared by tax professionals support NFTs and DeFi. These plans have 3 sub-plans which are:
- The consultation plan includes 30 mins consultation at $195
- The single-year at $3500
- Multi-year(two years) at $6500

Conclusion

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 have seen, both Koinly and Zenledger have made commendable strides in the world of crypto tax reporting. They are both useful and have their merits and demerits. However, a slight edge goes to Koinly because of the number of countries they support.

FAQs

Is Koinly the best tax software❓

Yes. A good crypto tax software like Koinly gives you an entire perspective of your investment across different platforms and connects easily with your wallets, exchanges, blockchain addresses, and services.

Is crypto tax software accurate❓

Yes. Crypto tax software is straightforward to use and offers very accurate data. It integrates with TurboTax and TaxDirect but also more than many crypto exchanges. They also blend well with the most popular wallets.

Does Zenledger report to IRS❓

Yes. Zenledger crypto tax software makes it easy for you by aggregating data from numerous exchanges, calculating your taxes, and generating common IRS forms like Form 8949 used to report capital gains and losses from your crypto investments.

How to calculate tax on crypto to crypto transactions❓

1. Calculate your profit from selling crypto – If you sell 2 Bitcoin at $50,000, subtract the price you purchase it and the transaction fees. The total is called the basis.)
2. Figure out whether you have a short-term or long-term gain – If you hold your cryptocurrency for less than one year, you have a short-term gain; if you kept your cryptocurrency longer, you have a long-term gain. What type of gain you realize ultimately determines your tax rate.
3. Estimate your taxes – One of the crucial aspects of estimating your crypto taxes is whether you will pay them on short-term or long-term gains. Short-term gains depend on your tax bracket, while long-term gains have their bracket.

You can also use crypto reporting software or tools to help you hasten the process. Make sure you list all information accurately and ensure that all records are correctly reconciled.

Does Koinly work for the UK❓

Yes. Koinly assists citizens of the UK to calculate their crypto capital gains. You can also develop an Income report that displays your revenue from Airdrops, Staking, Mining, Forks, etc.

Is Koinly safe to connect to exchanges❓

Koinly encrypts all data in transit. SSL Labs’ test results show that their APIs and application endpoints use only TLS/SSL and get an “A+” rating, which means they only use strong cypher suites and offer features such as Perfect Forward Secrecy and HSTS, and they also encrypt their data at rest.

Are airdrop, forks, staking, and mining taxed❓

Yes.

If an airdrop follows a hard fork and you receive new cryptocurrency, you will have taxable income in the taxable year you receive that cryptocurrency. Mining and Staking are also taxable income.