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Active Member

Capital Gains on Selling Cryptocurrencies

I'm trying to figure out how to count capital gains on the sale of Bitcoin.  When I try and do a journal entry to credit an other Income account of Capital Gains, I need to debit something.  If I debit my BTC wallet, it adds Bitcoin to my account, where as I don't have anymore, just what I sold was worth more. Please help.
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Re: Capital Gains on Selling Cryptocurrencies

Capital gain is a tax concept and not a daily accounting concept.

Bit coin seems like it should be a bank type account, but in reality I think it is more like a product you buy and sell, as a result I would track it as inventory.

You buy inventory at a given price, then when you sell it, the cost posts to COGS and the sales price posts as income. On the P&L income is reduced by expense

Active Member

Re: Capital Gains on Selling Cryptocurrencies

I understand that Crypto is more like an Asset, it's confusing when QuickBooks has this offered as a currency.  If I'm a multi-national company and I deal with multiple currencies at all times, there would be capital gains and losses from the exchanges of currency.  Why is this not calculated automatically based on the buying and selling orders?