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| December 18, 2018

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IRS to Face Record Number of Loss Claims, Says Crypto Accounting Firm

December 6, 2018 |

IRS to Face Record Number of Loss Claims, Says Crypto Accounting Firm

Node40, a developer of bitcoin tax-reporting software, expects the U.S. Internal Revenue Service (IRS) to receive a record number of cryptocurrency-related tax return claims this year, as it predicts that many investors will decide to declare their losses.

Also Read: G20 Leaders Declare Commitment to Regulate Crypto Assets

Pros and Cons of Reporting

IRS to Face Record Number of Loss Claims, Says Crypto Accounting FirmCryptocurrency traders hit by considerable price declines in 2018 now have a strong incentive to report their activities to the authorities, in order to offset their losses against other tax liabilities. However, Node40 warns that doing so could have long-term consequences for investors. For example, if an individual reports particularly high losses, they may be questioned about where the money came from to begin with.

“It is clear that, with the huge falls in cryptocurrency markets during 2018, many people will be weighing up whether this is a good opportunity to reveal the losses they have suffered,” said Perry Woodin, co-founder of Node40. “Having not reported their crypto activity up to now though, those choosing to reveal losses this year will need to report their crypto positions every year from now on, giving the tax authorities much better visibility of people’s crypto involvement.”

What You Need to Know

IRS to Face Record Number of Loss Claims, Says Crypto Accounting FirmReporting taxes based on inaccurate calculations in the U.S. could result in penalties of up to 40 percent and tax courts often place the burden of proof on the individual rather than on the IRS. So it’s important that people who choose to report this year have written records of all transactions they took part in, including accurate gains or losses, as well as proper cost basis assignments. If you use accounting software to generate these documents, make sure that it can recover historical trade activity from all the exchanges and wallets you have ever used.

“There is a lot for individuals to consider when it comes to crypto accounting and their tax returns,” said Sean Ryan, co-founder of Node40. “For example, ‘hodlers’ will have a completely different set of circumstances to traders, while those receiving crypto from forks and then selling will also have a unique situation to deal with.”

Is reporting crypto losses worth the risk? Share your thoughts in the comments section below.


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Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post IRS to Face Record Number of Loss Claims, Says Crypto Accounting Firm appeared first on Bitcoin News.

Bitcoin News

Jenna Jameson shares keto diet tips after 80-pound weight loss

December 5, 2018 |

Jenna Jameson keeps shedding the pounds post-baby thanks to her keto diet.
FOX News

Canadian Bitcoin Miner Fortress Blockchain Reports $1.16M Loss in Q3

November 29, 2018 |

Fortress Blockchain’s net loss worsened to $ 1.16 million (1.55 million Canadian dollars) in the third quarter, from $ 202,000 in the preceding three-month period, as price pressure continues to mount in the global bitcoin mining industry. The Canadian company said depreciation of $ 291,600 and listing expenses of $ 293,700 wiped away mining earnings.

Also read: Outrage Over Union Bank of Nigeria’s Threat to Close Crypto-Related Accounts

Revenue Falls as Bitcoin Plummets

Fortress Blockchain, which listed shares on the TSX Venture Exchange in August, sold 179.8 BTC for $ 1.13 million in the three months to September, at an average price of $ 6,605 per coin. About 83 BCH was sold for $ 35,300. The Vancouver-based company extracted much less bitcoin and bitcoin cash during the third quarter, however, as global cryptocurrency prices plummeted. It mined 64.5 BTC and 52 BCH at significantly lower prices compared to the previous quarter.

Canadian Bitcoin Miner Fortress Reports $  1.16 Million Q3 Loss as Sector Struggles

Revenue from its mining operations declined 37 percent to $ 463,900, from $ 741,000 in the previous quarter, according to an earnings release published Nov. 28. Revenue from the sale of bitcoin mining equipment coupons reached $ 267,500 in the three months to the end of September.

It said it had faced challenging conditions due to the “volatility in bitcoin prices.” It has also seen a rise in costs related to depreciation, listing and share-based compensation. Gross mining margins came in stronger, however, at 62 percent.

“The industry has gone through a corrective phase where mining difficulties are at an all time high while bitcoin prices have declined,” said Aydin Kilic, chief executive officer and co-founder of Fortress. “At press time, we have noticed the mining difficulty for Bitcoin has significantly decreased. However, this has been outpaced by a significant decline in the price of bitcoin.”

Miners Continue to Struggle

The global price of bitcoin has plunged more than 70 percent since January, dragging the rest of the cryptocurrency market down with it. Companies involved in mining or selling mining hardware have been hit hard. Reports say some companies have gone bankrupt, with a number of miners in China resorting to selling their equipment as junk to cut losses.

Canadian Bitcoin Miner Fortress Reports $  1.16 Million Q3 Loss as Sector Struggles

Fortress, which has a market capitalization of $ 6.40 million, touts itself as a low-cost green energy miner. The company operates about 1,400 S9 application-specific integrated circuit (ASIC) miners at its 2 MW flagship facility in the U.S. state of Washington, with an average operating hash rate of over 18.9 petahash/second.

Fortress has cut staff to achieve cost savings of $ 26,300 per month, said Kilic, who took a pay cut as part of a broader corporate reorganization exercise. The company also bolstered efficiency by installing Bitmain’s Overt ASIC Boost firmware on all of its mining hardware, resulting in a 14 percent average decline in power consumption, he said.

By the end of September, Fortress had cash on hand of $ 7.98 million and $ 19,200 of digital currency holdings, compared to $ 6.90 million in cash and $ 769,900 in cryptocurrency at the end of June. Its shares closed up 4.4 percent at $ 0.09 on Nov. 28.

What do you think about Fortress Blockchain’s quarterly performance? Let us know in the comments section below.


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Express yourself freely at Bitcoin.com’s user forums. We don’t censor on political grounds. Check forum.Bitcoin.com.

The post Canadian Bitcoin Miner Fortress Blockchain Reports $ 1.16M Loss in Q3 appeared first on Bitcoin News.

Bitcoin News

Market Ends Week at a Loss, Despite Late Buying Wave

November 17, 2018 |

A late afternoon wave of buying sent US stocks higher, the AP reports, but the market still ended the week with a loss. Health care and energy companies powered the gains Friday. UnitedHealth Group added 2.3% and Chevron rose 1.8%. The market got a boost in the afternoon…
Newser

Uber Posts Slower Sales Gains, Widening Loss Ahead of 2019 IPO

November 15, 2018 |

Results for the three months ending in September show that Uber is still growing quickly but is likely to be unprofitable for some time.
WSJ.com: US Business

Stocks Erase Early Loss, Finish Higher

November 15, 2018 |

A rebound in technology stocks helped the market erase an early loss and finish higher, breaking a five-day losing streak, the AP reports. Banks and industrial stocks also rose Thursday, offsetting losses in retailers, homebuilders and utilities. Energy stocks rose along with crude oil. British bank stocks plunged and the…
Newser

Uber sales growth slows as quarterly loss surges to $1.1 billion

November 15, 2018 |

Uber’s sales growth is dramatically slowing even as the ride-hailing company is spending more to fuel global growth, particularly in its food-delivery business.

Revenue growth reached only 38% in the third quarter, not even half of what it was six months earlier, when the company was negotiating…


L.A. Times – Business

Tech, financial stocks drag down market for S&P 500’s fifth consecutive loss

November 14, 2018 |

A turbulent day of trading on Wall Street ended Wednesday with a fifth consecutive loss for the benchmark S&P 500 index.

An early rally drove major indexes sharply higher but was gone by midday, leaving the market headed lower for the rest of the day. The Dow Jones industrial average swung from…


L.A. Times – Business

TMZ

Tekashi 6ix9ine’s Music Video Shooting is a Half Million Dollar Loss

November 13, 2018 |

The shooting at the home for the filming of the Tekashi 6ix9ine’s music video was a VERY expensive setback for the record label behind the project … as in almost half a million dollars down the drain. Sources tell TMZ … Universal Music…

TMZ.com

Canadian Bitcoin Miner Hut 8 Reports Q3 Loss of $8.7 Million

November 9, 2018 |

Canadian Bitcoin Miner Hut 8 Reports Q3 Loss of $  8.7 Million

Hut 8 Mining Corp., a Canadian bitcoin mining company, has released its third quarter earnings report, which shows a net loss of US $ 8.7 million on higher depreciation costs. Depreciation spiked to $ 13.3 million, wiping out mining profit which came to $ 6.7 million.

Also Read: Trade.io Acquires Primus Capital Markets to Offer BTC-Backed Forex Trading

 Revenue Soars but Profits Fall

During the third quarter of 2018, the Toronto-listed miner extracted 1,978 BTC at a cost of $ 3,394 per coin, almost half the average market price of bitcoin for the three months, which averaged $ 6,400. Hut 8 said this difference explains the profit on mining, at margins of about 51 percent. Overall, the company mined 3,581 BTC for the nine months to Sept. 30, and 4,200 BTC since operations began in December 2017.

Canadian Bitcoin Miner Hut 8 Reports Q3 Loss of $  8.7 Million

According to the earnings release published Nov. 8, Hut 8 reported revenue increase of 126 percent to $ 13.4 million from $ 5.9 million the previous quarter due to increased operational capacity. The $ 189 million-valued company deployed an additional 16 Blockboxes in September at its mining facility in the City of Medicine Hat (CMH), bringing it to a total 56 Blockboxes at the site.

Adjusted earnings before interest, tax, depreciation and amortization soared 86 percent to $ 5.5 million from $ 2.96 million a quarter earlier, “largely as a result of increased revenue from the new facility at CMH.” Hut 8 expects to see improved efficiency of the ASIC chips used to mine bitcoin during the colder months in Alberta, western Canada.

Record Temperatures Hurt Margins

Record-breaking summer temperatures in the province caused electricity prices at the company’s Drumheller facility to rise, contributing to lower profit margins. The unit procures power from the Alberta grid. However, the impact of a hot summer was far less at Hut 8’s larger facility in CMH, which purchases the majority of its electricity under contract with fixed prices. Andrew Kiguel, chief executive officer of Hut 8, said:

Our Drumheller facility represents approximately 20 percent of our operations. This summer, a record-setting heat wave in the province resulted in increased electricity costs during certain periods. The result was increased electricity costs at the Drumheller site by approximately $ 0.01 per Kw/h on average. We are actively managing our exposure to market prices through a number of different means.

The cryptocurrency mining company was established through an exclusive arrangement with Bitfury Group, a leading blockchain technology company.

Canadian Bitcoin Miner Hut 8 Reports Q3 Loss of $  8.7 Million

Through Bitfury, Hut 8 has access to a proprietary mix of hardware, software and operational expertise to construct, optimize and manage data centres in low-cost and attractive jurisdictions.

Shares of Hut 8 are up 4.21 percent at $ 2.25 in Toronto trading at the time of going to press. Over the past 52 weeks, Hut 8 shares have reached a high of $ 3.80 and a low of $ 1.77.

What do you think about Hut 8’s quarterly performance? Let us know in the comments below.


Images courtesy of Shutterstock.


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The post Canadian Bitcoin Miner Hut 8 Reports Q3 Loss of $ 8.7 Million appeared first on Bitcoin News.

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