Ledger is a popular hardware wallet with its own software wallet app, Ledger Live, but it also connects to a huge variety of web wallets - which can make calculating your Ledger crypto taxes a real headache! Our Ledger tax guide will tell you all you need to know about Ledger tax reporting and calculation.
How to prepare Ledger taxes
Whatever your Ledger investments, you’ll need to pay Capital Gains Tax on any profits and Income Tax on any crypto income. It’s a lot of work if you’re an active crypto trader, but Ledger users can prepare their crypto taxes pretty easily - starting with downloading your transaction history.
In our Ledger tax guide, we’ll cover everything you need to know about how to do your Ledger taxes, as well as the quickest way to get your Ledger taxes done!
How to download and export Ledger trading and transaction history
You can download your transaction history from your Ledger account in two ways, by API or by CSV file:
- Connect to the blockchains you interact with using Ledger via API. With the aid of an API, you can easily import your transaction history into crypto tax software which then calculates your tax and reports it to relevant tax authorities.
- You can choose to manually export your transaction history from your Ledger Live account as a CSV file. You have to download the transaction history before importing it into a crypto tax software like Koinly or use your CSV file to calculate your crypto taxes yourself.
Does Ledger provide a tax report?
No, Ledger doesn’t provide tax reports. Instead, they can provide details about your transaction history which can be used by crypto tax software to calculate and report taxes.
You can link the blockchains you interact with through Ledger to crypto tax software via an API to automatically calculate your transactions and generate your tax report. Alternatively, you can download a CSV file of your Ledger transaction history to calculate your taxes.
Does Ledger send a 1099 form to the IRS?
Ledger isn’t an exchange, so it’s unlikely you’ll be receiving a 1099 form from them. They only collect KYC data for the “buy” feature in Ledger live - which wouldn’t relate to 1099-MISC income.
Does Ledger supply a financial statement?
No, Ledger doesn’t supply a financial statement. However, with your Ledger transaction history, you can generate a financial statement that can be used for tax reporting.
Ledger CSV export?
Yes, Ledger does provide CSV exports.
You can get your Ledger CSV file through Ledger live. Once you're logged in the live desktop application, select accounts from the menu on the left. Now select export operation history, select the accounts you'd like to include (you'll need all of them) and then hit save and save the file to your device.
Remember, if you’re uploading your CSV file to a crypto tax calculator - you’ll need to export your complete Ledger transaction history to ensure your cost basis, fair market value and short and long-term capital gains are calculated correctly. So your CSV file needs to cover the entire time period you’ve used Ledger for - however long that might be.
Ledger tax API
Ledger does have an API function so you can automatically get your transaction history imported into a crypto tax app.
To do this, you’ll need the public address/key for the individual coins/tokens you hold in Ledger. You’ll need to do this for each coin or you interact with using your Ledger account. Once you’ve got your public address/key, just enter it into your crypto tax app and your Ledger transaction history will be automatically returned via API.
Does Ledger provide an end of year statement?
No, Ledger doesn’t provide an end-of-year statement. But you can create one using crypto tax software.
Does Ledger report to the IRS?
Ledger is a hardware wallet mostly used for holding crypto and you only need to complete KYC verification if you use the “buy” function in Ledger Live. As such, it’s very unlikely Ledger reports to the IRS directly as they have minimal information to share.
However, if you’re moving assets from centralized exchanges into Ledger, many of these exchanges are legally compelled to share customer data with the IRS. These exchanges will have records of where your crypto has gone - including when you transfer it to Ledger.
Does Ledger report to other tax authorities?
As we said above, Ledger is a hardware wallet mostly used for holding crypto and you only need to complete KYC verification if you use the “buy” function in Ledger Live. As such, it’s very unlikely Ledger reports to any tax offices directly as they have minimal information to share.
Again, if you’re transferring crypto assets from large centralized exchanges into your Ledger wallet - these exchanges may be legally compelled to share customer data with various tax offices around the world.
How to generate Ledger tax forms
Generating tax forms for Ledger can be done in two ways. You can either generate it automatically via API or you can manually download a CSV file of your transaction history.
If you're doing it manually, download your CSV file of your Ledger operations history, as well as other CSV files from all the exchanges and wallets you use. You’ll then need to identify each taxable transaction, your capital gain or loss and any income from crypto (including the fair market value of the crypto on the day you received it).
If you have a lot of transactions, calculating your taxes by yourself can be a tedious task.
However, with crypto tax software like Koinly, you don't need to go through that stress. You only need the Ledger API to download and generate your tax form and the good news is that Koinly does this minutes. Koinly generates your tax form based on your residential location and local tax authorities. Importing CSV files of your Ledger transactions into Koinly is also an efficient way of generating your tax forms if you’re unable to access your public key/address.
Calculating and reporting your taxes are important if you don't want any legal action taken against your crypto business. However, it can be both tedious and tricky. You may have many transactions to deal with and not have the hours free to make sure every taxable transaction is identified and taxed correctly.
Well, Koinly is here to save you the stress and give you accurate tax reports. Koinly imports your Ledger transaction history and also calculates your taxes! Koinly also saves you time, presents your tax information to the appropriate tax authorities in a precise format, and also ensures that you do not pay excessive taxes. Here’s what our crypto tax calculator does:
- Imports all information about your trades such as sales, swaps, purchases, and rewards.
- Helps you convert your transactions into the currency value of your country of residence at fair market value (this saves you a lot of time and energy).
- Identifies your taxable transactions and calculates your capital gains, losses and income.
- Generates a simple tax report, ready to file with your tax office.