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Title: Documenting bitcoin cash buys Post by: Ploo on February 11, 2013, 07:27:40 PM I've been trading BTC in the UK via bank transfer for a while now and may begin doing cash purchases soon. I've realised that it is critical I document the cash withdrawal as an expense so that I get taxed only on the profit and not the entire turnover of the bitcoin sale. Usually this is done via the means of keeping receipts - so I guess I could have some sort of receipt that documents the exchange but I'm not sure where to begin.
What kind of information do I put on it? Do I want the sellers signature on it? How much information on the seller do I want, bearing in mind that he may not want to disclose any? Title: Re: Documenting bitcoin cash buys Post by: 21after2 on February 11, 2013, 11:18:26 PM You're talking about buying BTC in person with cash, right?
For disclosure: I'm from the US, so I don't know how different UK tax law is compared to the US. If it's similar, then you're probably going to want to include the name of the seller, his address, the date, what you purchased (i.e; how many Bitcoins), and what you paid for them. If you're going to hand-write the receipts, you could do something like this (with the info UK appropriate, of course): Sold By: Thomas Thomason Address: 123 Road Street Lane Boston, MA 02128 Date: 2/11/2013 Item: Bitcoin Quantity: 5 Price: $122.50 Received By: James Jameson Paid: Cash |