Wondering whether you need to report taxes on your Ledger wallet?
While there’s no need to report taxes simply for holding cryptocurrency, other types of cryptocurrency transactions are subject to ordinary income and capital gains tax.
In this guide, we’ll break down everything you need to know about how your Ledger transactions are taxed. We’ll also share a step-by-step process to help you generate a comprehensive crypto tax report in minutes — including all of your Ledger transactions!
Ledger is a cryptocurrency hardware wallet manufacturer headquartered in Paris, France. The company was founded in 2014 to help users safely and securely store their cryptocurrency.
Currently, the Ledger Nano S allows users to hold more than 1,000 cryptocurrencies including Bitcoin and Ethereum.
There are no taxes for simply holding your crypto in your Ledger wallet or moving your crypto between wallets.
However, you are subject to tax when you earn or dispose of your cryptocurrency.
For more information, check out our ultimate guide to cryptocurrency taxes.
Ledger does collect KYC (Know Your Customer) information for users who trade cryptocurrency through Ledger Live. However, the company does not collect information on users who only use the Ledger hardware wallet.
Still, it’s important to remember that transactions on blockchains like Bitcoin and Ethereum are publicly visible. In the past, the IRS has worked with contractors like Chainalysis to match known individuals to ‘anonymous’ wallets.
At this time, Ledger doesn’t send tax forms to customers.
Because investors often transfer their crypto between different wallets, cryptocurrency platforms don’t have information on cost basis needed to calculate capital gains and losses.
With CoinLedger, you can pull your Ledger transactions directly from Ethereum and other blockchains in a few easy steps.
1. Within the CoinLedger app, go to ‘Add Account’ and select the relevant blockchain.
2. Now, it’s time to retrieve the relevant wallet address from Ledger. Click on Receive on the left-hand side Menu of the Ledger Live App.
3. Select your desired wallet address in the Account to credit dropdown box. Remember, each blockchain supported by Ledger has a different wallet address — so make sure to choose the right one!
4. Press Continue and follow the prompts to connect and unlock your device.
5. Once confirmed, copy your wallet address.
6. Enter your public wallet address within the CoinLedger app, and let the platform import your trades directly from the blockchain.
7. If you want to report your transactions from multiple blockchains, you can repeat steps 3-6 for all relevant blockchains on Ledger.
You can also report your Ledger transactions using CoinLedger’s manual import template.
Once you’re done importing your transactions from Ledger and your other wallets, you can generate a crypto tax report with the click of a button.
Want to get started filing your cryptocurrency taxes? CoinLedger can help. More than 400,000 crypto investors across the globe use CoinLedger to take the stress out of their tax season.