As Bitcoin has grown in popularity over the past few years, many businesses have begun accepting it has a form of payment. In addition to this, a increasing number of businesses often hold a portion of their Bitcoin for periods of time after they receive it, as opposed to immediately converting it to fiat and withdrawing to their bank account. Below are five reports we offer with Libra Business that help businesses efficiently manage Bitcoin and other digital currencies they are accepting and/or holding.
The Tax Report:
This report is provided in the format of IRS Form 8949 and allows businesses to seamlessly report capital gains and or losses. It is used to accompany a Schedule D report which provides the short-term and/or long-term gains and/or losses a business has accrued while accepting Bitcoin and holding it or other digital currencies.
The Balance Report:
This report clearly organizes all acquisitions and disposals of Bitcoin and/or other digital currencies and provides the total net balance. In addition, for each transaction the destination of the transaction is also provided along with any notes accompanying the transaction that have been included.
The Acquisition Report:
This is a special report that gives each acquisition of Bitcoin or digital currency a unique identifier, along with the current holding period and the original cost basis. Any partial or complete disposals/redemptions of Bitcoin or other digital currency are also shown. This report can be generated for multiple cost-basis methods, such as FIFO or LIFO.
The Disposal Report:
This report displays all disposal/redemptive transactions that create a taxable event, along with the capital gain or loss that accompanies each disposal. For each disposal, the exchange rate is also included with the capital gain or loss to provide additional context to the taxable event.
The Libra Matrix™ Report:
This is a unique hybrid report that gives a business a complete high-level view of everything happening in relation to their bitcoin or digital currency-related transactions. It combines information from both the Acquisition and Disposal Reports in one place. In addition, it defines which disposals are associated with what acquisition lots, and any other related transactions in case a lot is “split.” Every transaction shows the original basis, holding period and sale/disposal price.