Quote from: BennyTheBall on August 25, 2014, 07:56:03 PM

Quote from: Biodom on August 25, 2014, 07:51:56 PM

Quote from: Moria843 on August 25, 2014, 07:42:56 PM

The ROI with bitcoin purchases can depend on how you look at it. I purchased some S1s with bitcoins that I purchased at about $350. To keep the math simple, say the bitcoin value was $650 when I purchased an S1 at 1 BTC. Did the S1 cost me $350 or $650?

I feel that it only cost me $350 since that's what I paid for the 1 BTC.

For tax purposes, I'm using FIFO accounting similar to when opening and closing a stock "tax lot". But for tax purposes I'm not sure whether I should be taking a capital gain of $300 for when "I sold" the bitcoin and then claiming the S1 cost me $650.

Guess it depends on how the IRS treats. Will be fun at tax time.

interesting...I say that if you purchased 1 BTC for $350, then bought something that cost $650 with that bitcoin, then yes, you had capital gains of $300, but if you bought miner for BTC, then you just spend your original $350, UNLESS you later sold your miner. Selling would close the "circle" of transactions back to cash.

What about if you bought with BTC that you mined using other equipment? In the simplistic view, that BTC cost you $0.

no, it did not cost you zero. Did you pay for that prior equipment plus electricity?