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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