Paying Taxes with Dash: A Complete Guide to ZenLedger

ZenLedger is a cryptocurrency tax software that allows users to pay their Dash and other crypto taxes in minutes. Aside from crypto assets, ZenLledger can also be used to pay DeFi and NFT taxes. Say goodbye to the tedious tax filing process and thousands of calculations, and let ZenLedger handle them for you.

With ZenLedger, you can:

• Track your taxes.
• Avoid overpaying taxes.
• Track your wins and losses to make informed crypto decisions in the future.

So, how does ZenLedgerZenledger handle Dash tax submissions on your behalf? Let’s find out.

How Does ZenLedger Tax Software Work?

With only a public address, the ZenLedger tax tool allows Dashers to easily connect their Dash address and import all their Dash transactions for fast tax filing. ZenLledger crypto-tax software operates in three major steps.

1. Importing transactions
2. Reviewing transactions
3. Downloading tax reports

1. Import your crypto exchanges and wallets

After creating your ZenLedger account with either Coinbase, Google, or email, the first step is to import your crypto exchanges, like Coinbase and Binance, and wallets. ZenLedger allows users to connect to over 500 crypto platforms and wallets, which is pretty generous. So you won’t miss all your exchanges and wallets on the list.

To import your exchanges and wallets, you can use a public wallet address, CSV, or a read-only API.

Visit the imports tab at the top and click on “add accounts”. You must add all of your transactions since you first started investing in crypto. Failure to do so may result in an incorrect tax report. So make sure you load everything.

For example, if you need to import from the Coinbase exchange, select Coinbase from the list of exchanges, then proceed to choose whether to import with the Coinbase OAuth or API. Also, if you use Coinbase and Coinbase Pro, you need to import both exchanges, not just Coinbase.

Next, tap your wallet and select a coin. For example, Dash then enters your custom wallet name (optional) and wallet address. Make sure to check if the wallet is in the USA. Dash-supported wallets include Jaxx, Abra, Exodus, Ledger Nano, Trust Wallet, Trezor, BitPay, Coinomi, Electrum, and Bitlox.

By connecting these exchanges and wallets, you are importing all of our Dash trading history into ZenLledger over the years. Next, ZenLedger will instinctively compute the fair market value(FMV), cost basis, and profit and loss for your Dash transaction history.

2. Review your transactions

After importing all your Dash transactions, the next step is to review them to ensure you have imported them correctly and successfully. On the review page, you will see the number of your Dash trades, deposits, withdrawals, exchanges, and the number of transactions that need review. Also, you can quickly determine your capital profits and losses and review your tax liability for each Dash transaction.

On this page, you will also see transaction sources at the top right part of the page. You may click on it, and if you want, you may take a quick snapshot of your transactions. This may be helpful, especially if you wish to return to the preview pages.

ZenLedger offers a custom-built resolution center that helps you identify any potential missing transactions or transactions that need your review. While most transactions are handled without user assistance, there are some obscure tokens and NFTs that will not have fair market value automatically associated with them. You can also analyze historical Dash tax income like staking, lending, mining, gifts, or platform rewards like forks and airdrops.

3. Download Your Dash Tax Forms

After analyzing all your Dash transactions and ensuring their correctness, the next move is to download your tax reports, sign them, and file them on the taxes tab You can view your taxes by year on this tab So if you select 2019 taxes, you will view the documents below:

• IRS Form 8949
• Schedules 1 and D
• Fincen 114 // FBAR
• Grand Unified Accounting
• Tax-Loss Harvesting (Tax-Loss harvesting may help you identify the crypto assets running at a loss and help you make informed decisions in the future)
• TurboTax Online Direct Import

Also, you may select your tax calculation accounting method between FIFO (First-In-First-Out), LIFO (Last-In-First-Out), or HIFO (Highest-In-First-Out). You can also add a tax professional to collaborate with you on your account by tapping on “tax pro” at the top left side of the page.

Now that you have understood the process of filing Dash taxes with ZenLedger, does it mean you should pay taxes every time you use Dash?

Taxable and Non-Taxable Crypto Events

There are two types of crypto events: taxable and non-taxable. Most crypto transactions are taxed because investors gain something from them. However, not all result in a profit. Let’s look at examples of taxable and non-taxable crypto events.

Here is an example of a crypto tax calculation.

Suppose your annual income is $55,000, and you file your taxes as a single. On August 1st, you purchased $500 of BTC and sold it just under a year later, on July 1st, for $1,500. Your gain of $1,000 will qualify for short-term capital gains at the rate of 25%, resulting in 0.25 (tax rate) *$1,000 (capital gain) = $250 (tax owed)

• Sale price of assets — Cost of acquiring assets = Short-term gains
• Sale price = $1,500
• Cost of acquiring assets = $500
• $1,500 (sale price) — $500 (cost of acquisition) = $1,000 (gains)
• This gain of $1,000 is a short-term gain as the assets were sold within 11 months.
• Annual income = $55,000, and the short-term capital gains tax rate for this income is 25%.
• So, tax owed = 25% * Capital gains = 0.25 * $1,000 = $250.

Another example is that your annual income is $35,000, and you bought $500 of BTC on August 1, 2020. If you sold it at $1,500 on August 2, 2021, you would incur a long-term capital gain of $1,000. According to the rates tabulated above, you’ll have to pay 0% taxes. Thus, no federal taxes will apply.

• The sale price of assets — Cost of acquiring assets = Long-term gains
• The sale price = $1,500
• The cost of acquiring assets = $500
• $1,500 (sale price) — $500 (cost of acquisition) = $1,000 (gains)
• This gain of $1,000 is a long-term gain as the assets are sold after one year.
• Annual income = $35,000, and the long-term capital gains tax rate for this income is 0%.