Buying Bitcoin through an LLC

Is anyone actually doing this?

I’m trying to wrap my head around how this works—is it treated just like any other business purchase, say, stocking up inventory for a warehouse?
How does the bookkeeping look?
And what about the legal side of things?

If anyone has some insight... I’d be incredibly grateful if you could walk me through the specifics.🙂

Lisa Myers27 said:Is anyone actually doing this?

I’m trying to wrap my head around how this works—is it treated just like any other business purchase, say, stocking up inventory for a warehouse?
How does the bookkeeping look?
And what about the legal side of things?

If anyone has some insight... I’d be incredibly grateful if you could walk me through the specifics.🙂

http://www.irs.gov/newsroom/....aspx?id=19514
👍

Carol Price4 said:http://www.irs.gov/newsroom/....aspx?id=19514
👍

Thanks for the link, but... can you give me the SparkNotes version? I'm wondering if I can just buy this through my LLC and list it as "office equipment" or some kind of inventory? This whole thing on the IRS site is a total mess... honestly, do you know anyone who actually handles this or books stuff like this for clients?

Lisa Myers27 said:Thanks for the link, but... can you give me the SparkNotes version? I'm wondering if I can just buy this through my LLC and list it as "office equipment" or some kind of inventory? This whole thing on the IRS site is a total mess... honestly, do you know anyone who actually handles this or books stuff like this for clients?

Well, Bitcoin isn't considered a physical asset, so you can't book it that way—the European Union courts have already ruled on that. Basically, if a company buys it, it’s treated as its own separate virtual account—kind of like having an extra checking account sitting there.

Lisa Myers27 said:Thanks for the link, but... can you give me the SparkNotes version? I'm wondering if I can just buy this through my LLC and list it as "office equipment" or some kind of inventory? This whole thing on the IRS site is a total mess... honestly, do you know anyone who actually handles this or books stuff like this for clients?

I just list Bitcoin and other crypto under "other financial assets" on my Chase account.
I run it through the foreign exchange ledger. Usually, we’re just buying and selling on the exchange. We don't accept Bitcoin directly for payments, but when we buy, the transaction shows up as Bitcoin, so I just transfer the funds from the FX account. On top of all that, I have a mountain of paperwork I manage to scavenge from my boss, which I then staple together to make sense of it all.