I don't think it is good news.
If you are a miner, EVERY single time you are credited for any crypto coin, has to be tracked at present value to USD. So, I get like 50 transactions a day, every single day. Hrmmm, yeah, that's fun.
Also, all your mining, is counted as income, with taxes due on the value it was mined at. You don't get to say I mined it on Feb 2, and now it is worth half so I'll report that lower amount as income, that would be a capital gains loss, not an ordinary income loss. So, if you are mining and holding, even if you do not sell 1 coin this year, you owe taxes on it, and you owe FICA tax on it as well.
Big Mining operations, almost have to sell as they mine, as in if you mine a bitcoin or whatever coin and it was worth 500 dollars at the time of mining, you owe taxes on 500 bucks, doesn't matter if that bitcoin is worth 0.00 at the end of the year, you still owe that. So, let's say your 500 dollar bitcoin drops to 250. Tough you owe on 500 in ordinary income taxes. . Anyway, if coin prices keep falling there is a very real chance miners that mine and hold could owe more in taxes than the value of the coin at the end of the year.
Bitcoin or litecoin or whatever coin, the same thing applies.
If you are a miner, EVERY single time you are credited for any crypto coin, has to be tracked at present value to USD. So, I get like 50 transactions a day, every single day. Hrmmm, yeah, that's fun.
Also, all your mining, is counted as income, with taxes due on the value it was mined at. You don't get to say I mined it on Feb 2, and now it is worth half so I'll report that lower amount as income, that would be a capital gains loss, not an ordinary income loss. So, if you are mining and holding, even if you do not sell 1 coin this year, you owe taxes on it, and you owe FICA tax on it as well.
Big Mining operations, almost have to sell as they mine, as in if you mine a bitcoin or whatever coin and it was worth 500 dollars at the time of mining, you owe taxes on 500 bucks, doesn't matter if that bitcoin is worth 0.00 at the end of the year, you still owe that. So, let's say your 500 dollar bitcoin drops to 250. Tough you owe on 500 in ordinary income taxes. . Anyway, if coin prices keep falling there is a very real chance miners that mine and hold could owe more in taxes than the value of the coin at the end of the year.
Bitcoin or litecoin or whatever coin, the same thing applies.
On the other hand, ALL of your expenses (and then some) are deductible. Plus you can use your common sense or experienced knowledge to sell some (or all) of your mined bitcoins when the price rebounds and buy back when the price drops, thus becoming not just a miner but an investor and speculator with a range of options largely depending on how you are doing, for instance, if after the first three months you have been able to sell at higher prices than current, you may choose not to sell what you are currently mining and wait for a rebound in price. You can also buy at this lower price with the proceeds of previous sales. You DO have a lot of options and a lot of deductions as well as many opportunities through the year not only to obtain profits but to minimize possible temporary losses.
But complaining is, obviously, neither taxable nor deductible, so complain at will.
There wasn't complaining in my post. You are just hyper sensitive.
