Quote from: Stratobitz on August 25, 2014, 09:37:33 PM

Quote from: Biodom on August 25, 2014, 09:26:53 PM

Quote from: Stratobitz on August 25, 2014, 09:00:38 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.

You should look into whether or not you can qualify as a manufacturer in your jurisdiction. We had to take the issue to court with the state, but prevailed. Thus all digital products we produce are inventory; and there is no taxable event until the item which we manufactured is sold.

Our position, was that the definition of manufacturing (in our area) was "Usuing machines, manpower, materials, and or energy to create a new tangible item." We argued that is exactly what we were doing. Rearranging 1s and 0s and producing paper wallets.

Victory for us. We ended up landing a sales tax exemption, and manufacturing exemption.

Strato

interesting...where are you (in US)?

Yes

state, man, is it a secret?