
Square Just Turned On Bitcoin Payments for Your Business: What Changes at Checkout, at Tax Time, and in Your Books
Square auto-enabled bitcoin for ~4M US sellers with instant dollar settlement, so the IRS property rule barely touches your books.
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Bitcoin accounting, tracking, and tax reporting strategies

Square auto-enabled bitcoin for ~4M US sellers with instant dollar settlement, so the IRS property rule barely touches your books.

Under IRS Notice 2014-21, every mining pool payout is ordinary income at its fair market value on receipt — a daily-payout pool creates ~365 taxable events a year before you sell anything. This guide covers hobby vs. Schedule C classification, 15.3% self-employment tax, Section 179 vs. 100% bonus depreciation for ASICs, the 2026 per-wallet cost-basis rule, Form 1099-DA reconciliation, and the per-lot records mining books need to survive an audit.

FASB's ASU 2023-08 requires companies to measure qualifying crypto assets like Bitcoin at fair value each reporting period, replacing the cost-less-impairment model that only ever recognized write-downs — a change now in effect for fiscal years beginning after December 15, 2024.

A 2026 guide to bookkeeping for independent ATM and Bitcoin kiosk route operators — covering FinCEN MSB registration, BSA/AML programs, Form 8300 thresholds, Section 179 depreciation, vault-float accounting, and the five per-machine KPIs that determine whether a route is actually profitable.

Master cryptocurrency accounting with Beancount.io. Learn to track Bitcoin, Ethereum, DeFi activities, staking rewards, and ensure tax compliance with plain-text accounting. Complete guide for crypto investors and traders.