With bitcoin prices recently surging over $2,500 it’s time explain what you need to know about bitcoin as a CPA. The reason it is important is you can transact with it online with almost no transaction fees. However, its value is volatile.

The future of bitcoin is important because of the blockchain technology behind it. Blockchain is a ledger of every transaction documented by distributed computers all over the world.

The main thing you need to know is while bitcoin is used as a currency, it is not recognized as a currency in the United States. Therefore every transaction is a capital transaction. The IRS requires gain or loss recognition on the new value of the asset at the time of each transaction.

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