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@dbtaxsolutions wrote:

...Expenses:  Depreciation (section 179 of intangible asset, the smart contracts)...

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Where under §179 do you find that this code section would be applicable to intangibles (other than certain computer software)?

You got me curious, so I looked up a bit on the Internet how this Forsage Smart Contract System works.  From what I can tell, what your client paid for is some sort of registration fee for participation - that, in itself, is not a fee for smart contracts.  If anything at all, the closest thing my little brain can think of is §197 intangibles with an amortization period of 15 years.

There is quite a bit of coverage that the "system" has the hallmarks of a modern-day electronic ponzi scheme although the company has self-published various press releases, which anyone can do (as if those were news reports), to assure readers that it is not.  In fact, the SEC in the US has issued warnings about cryptocurrency ponzi schemes and a warning specifically against Forsage was recently issued by the SEC in the Philippines.

I would tread carefully in this space, tighten up the due d, and document my discussions with my client about the implications if I were you.