Re: Accounting for Cryptocurrency Mining Operations

2017-10-26 Thread DaveC49
I think the accounting for bitcoin production would be similar to any other manufacturing cost accounting although identifying the component costs may be interesting. If you are running your own hardware to do it then that is one cost, (depreciation, running costs etc) which will more than likely

Re: Accounting for Cryptocurrency Mining Operations

2017-10-26 Thread Dustin Henning
https://www.irs.gov/newsroom/irs-virtual-currency-guidance IIRC (from reading in 2014, so don't count on me as your accountant or lawyer, of which I am neither), according to the guidance linked in the post above, mined cryptocurrency is to be reported as regular income at its then current

Re: Accounting for Cryptocurrency Mining Operations

2017-10-26 Thread Adrien Monteleone
Definitely one for both a CPA and lawyer for anyone doing any actual mining. I’m sure someone big somewhere is already blazing this trail, and it would be interesting to see how it is being handled on their books. Regards, Adrien > On Oct 26, 2017, at 9:19 AM, John Ralls

Re: Accounting for Cryptocurrency Mining Operations

2017-10-26 Thread Adrien Monteleone
From what I read last night, the basic idea is to estimate the mineral value from the purchase if it wasn’t stated explicitly. When purchasing a property for the purpose of mineral extraction, the estimated lode value is listed in the sale documents. You’re making two purchases - one for the

Re: Accounting for Cryptocurrency Mining Operations

2017-10-26 Thread John Ralls
> On Oct 26, 2017, at 4:19 AM, Jean-David Beyer wrote: > > On 10/26/2017 12:21 AM, Rodney Elliott wrote: >> Hi All. >> >> >> If I were to purchase a cryptocurrency (say Bitcoin) with a fiat >> currency recognised by gnucash (say USD), then the procedure to >> record

Re: Accounting for Cryptocurrency Mining Operations

2017-10-26 Thread Jean-David Beyer
On 10/26/2017 12:21 AM, Rodney Elliott wrote: > Hi All. > > > If I were to purchase a cryptocurrency (say Bitcoin) with a fiat > currency recognised by gnucash (say USD), then the procedure to > record the transaction is clear - create an asset account of the type > 'stock', associate it with a

Re: Accounting for Cryptocurrency Mining Operations

2017-10-25 Thread Adrien Monteleone
After some more creative search phrasing, I found those mining entries, but they don’t really apply. I’d think then you’re dealing with a situation more like farming. You’re not extracting a depleting resource but creating one, with limited inputs. (unless you consider the artificial hard limit

Re: Accounting for Cryptocurrency Mining Operations

2017-10-25 Thread Adrien Monteleone
Ironic that you refer to Bitcoin as coming from ‘thin-air’ in the same discussion claiming no ‘fiat currency’ was involved. You might have just exposed cryptocurrency as not having any clothes. At least for now, I’d posit the answer has to lie in the accounting equation. Have you decreased

Accounting for Cryptocurrency Mining Operations

2017-10-25 Thread Rodney Elliott
Hi All. If I were to purchase a cryptocurrency (say Bitcoin) with a fiat currency recognised by gnucash (say USD), then the procedure to record the transaction is clear - create an asset account of the type 'stock', associate it with a new security that uses the coin ticker (BTC) and the