Taxman Cometh

So despite all the negative news about Bitcoin and virtual currency, your organization has  decided to accept them. This raises a new question for treasury and finance professionals: How  do you handle the bookkeeping and taxes?

One way to look at bitcoins is as they are a new type of digital files–similar to your digital music  collection. As a result, for accounting purposes, it is usually best to treat Bitcoin like any other valuable  good or commodity. You can buy them, sell them, or trade them for goods and services, and they can  appreciate or depreciate in value.

“You would treat it as any other asset, using standard procedures that have long been around in  accounting,” said Bruce Fenton, president of the  Bitcoin Financial Association, an advocacy group formed  to educate businesses and government about Bitcoin.

AFP April 2014 article

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