[Answered] Bitcoin and Taxes

[TimXCampbell]

I was a computer consultant and developer for about 25 years and though I lived in Canada a big chunk of my business came from the USA. So when tax time rolled around I calculated the value of each month's U.S. earnings by multiplying the U.S. funds received by the exchange rate for that month in order to calculate that month's net income.

Zzzzzzzz. Okay, this isn't the most fascinating topic you've ever read. I hope you can bear with me until I get to the question.

I've been looking 'round the Bitcoin world for a bit and I have yet to find a month-by-month conversion chart so that I could declare Bitcoin earnings (if any) in a rational way. Does a site exist that provides the historical conversion rates in one place? Or do I have to dig deep through the blocks and work it all out for myself?

Thanks.

[1715067205]

1715067205

[Epoch]

This might help:

http://bitcoincharts.com/charts/mtgoxUSD#rg60ztgSzm1g10zm2g25zv

It has full historical pricing data from mid-2010 to present. You can customize the view to show any period you are interested in, in various currencies as well.

[Stephen Gornick]

Does a site exist that provides the historical conversion rates in one place?

Trailing twelve month, month-end closing BTC/USD at Mt. Gox:
 - https://docs.google.com/spreadsheet/ccc?key=0AmcTCtjBoRWUdEgxb0lEb1h1M2htM05sY0pXd3FXQ2c

Historical time-series:
 - https://docs.google.com/spreadsheet/ccc?key=0AmcTCtjBoRWUdHJuUE1mUkFxa3A0eHBDQkxZLVVFZmc

Or do I have to dig deep through the blocks

Blockchain blocks?   

[TimXCampbell]

Ah, that's the perfect info! Thanks Epoch & Stephen.

[TimXCampbell]

Blockchain blocks?   

Is there a problem with my terminology? Probably. I've been looking into this stuff for just a day and a bit. I have not yet grokked how it all works together.

As I learn ever more about Bitcoin and its community, my slow but heroic computer enters its 26th grueling hour of sync'ing for the first time.

[Stephen Gornick]

Blockchain blocks?   

Is there a problem with my terminology? Probably. I've been looking into this stuff for just a day and a bit. I have not yet grokked how it all works together.

The reason I asked that was that there is no data in the bitcoin blockchain relating to the exchange rate.  When bitcoins are traded for fiat, they are either done at an exchange, or in-person / face-to-face.  But generally, the exchange rate from the largest market (the BTC/USD at Mt. Gox) suffices for a record of price history.

[TimXCampbell]

Ah, all good information. Thanks!