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Hey all, quick question for my USA CPAs/Accountants.
Do any of you happen to track cryptocurrency "mining" income for clients?
If so what strategy and/or software do you use?
I myself am a miner, and personally use QuickBooks because it's really useful for other aspects of my business, but it REALLY sucks for crypto mining (I have to manually enter every transaction).
I DO understand that there are several major taxable events when it comes to crypto which must be tracked:
1. Receiving cryptocurrency from "mining" is a taxable event (income).
2. Receiving cryptocurrency in exchange for a good/service is a taxable event (income).
3. Selling cryptocurrency, or exchanging it for another, is a taxable event (capital gains/loss).
I find that tracking "mining" income (#1) is quite a painful process, compared to the others.
I need to track the USD value right when I receive the mined coins (which can be several payouts a day).
Not only this, but I have to remember which payouts were received at what USD price, to accurately track short/long-term capital gains as well before selling.
I am thinking about developing a web application to automate this whole process, and am curious if other Accountants are having this problem with their clients?
Do any of you happen to track cryptocurrency "mining" income for clients?
If so what strategy and/or software do you use?
I myself am a miner, and personally use QuickBooks because it's really useful for other aspects of my business, but it REALLY sucks for crypto mining (I have to manually enter every transaction).
I DO understand that there are several major taxable events when it comes to crypto which must be tracked:
1. Receiving cryptocurrency from "mining" is a taxable event (income).
2. Receiving cryptocurrency in exchange for a good/service is a taxable event (income).
3. Selling cryptocurrency, or exchanging it for another, is a taxable event (capital gains/loss).
I find that tracking "mining" income (#1) is quite a painful process, compared to the others.
I need to track the USD value right when I receive the mined coins (which can be several payouts a day).
Not only this, but I have to remember which payouts were received at what USD price, to accurately track short/long-term capital gains as well before selling.
I am thinking about developing a web application to automate this whole process, and am curious if other Accountants are having this problem with their clients?