Bitcoin Mining Tax Software | Bitcointalksearch.org

philipma1957

legendary

Activity: 4256

Merit: 8551

'The right to privacy matters'

Quote from: danieleither on February 26, 2024, 10:08:04 AM

Quote from: philipma1957 on February 25, 2024, 05:29:36 PM

Quote from: danieleither on February 25, 2024, 04:59:21 PM

Quote from: NotFuzzyWarm on February 23, 2024, 06:00:44 PM

Quote from: danieleither on February 23, 2024, 02:29:16 PM

Quote from: mrwhendul on February 06, 2024, 02:06:17 PM

Looking for suggestions on BTC Mining tax software.
Does anyone have experience in this space? Looking for suggestions.
Thanks!

I'm confused why anyone would need specific software for this? Bitcoin mining has to be one of the most basic and simplest business models out there!?

Mainly to track BTC going in & out of your wallets/accounts so you can establish a Cost Basis used to determine the Capital Gains tax due.
eg you bought coins at X price and sold/spent some at Y price. If Y is larger than X you owe tax on it = to the Gain in value. Conversely if Y is lower than X you get a tax credit for the Loss in value.

Thing is, any decent exchange will let you download your complete Tx history as a .cvs file that ya can import into a spreadsheet and do the same thing with just a little effort...

Yes... But what you're describing is Bitcoin trading, not mining?

Well if usa based and you sell any coin for any reason.

you need to report its cost basis and its sell price.

Ie. I point a s19 to a pool and mine all year long.

cost basis can be complex.

pretend you distribute 12 times a year.

you would have 12 btc deposits.

every one had a price when you got it. pretend last year your 12 deposits

were

jan 30k price giving you 300 usd in value you burned 200 in power
feb 32k price giving you 320 usd in value you burned 200 in power
mar 34k price giving you 340 usd in value you burned 200 in power
.
.
dec 48k price. giving you 480 usd in value you burned 200 in power.

the software will help track above.

not the power but the value when you got the coin.

So now you are in december you hodled the whole year.

you sell all the coin at 48k well all that coin is subject to short term cap gains.

I super super simplefied this as it is a lot more complicated.

now if you mine and only stack and hodl.

it is easier. but eventually you will do something with your coins. you will need cost basis then.

Sounds like a country-specific thing then. Here in UK, all that matters are the values at the beginning and end of each tax year, no need to count for individual transactions throughout the year.

easier and less work for UK for sure.

danieleither

full member

Activity: 219

Merit: 426

Quote from: philipma1957 on February 25, 2024, 05:29:36 PM

Quote from: danieleither on February 25, 2024, 04:59:21 PM

Quote from: NotFuzzyWarm on February 23, 2024, 06:00:44 PM

Quote from: danieleither on February 23, 2024, 02:29:16 PM

Quote from: mrwhendul on February 06, 2024, 02:06:17 PM

Looking for suggestions on BTC Mining tax software.
Does anyone have experience in this space? Looking for suggestions.
Thanks!

I'm confused why anyone would need specific software for this? Bitcoin mining has to be one of the most basic and simplest business models out there!?

Mainly to track BTC going in & out of your wallets/accounts so you can establish a Cost Basis used to determine the Capital Gains tax due.
eg you bought coins at X price and sold/spent some at Y price. If Y is larger than X you owe tax on it = to the Gain in value. Conversely if Y is lower than X you get a tax credit for the Loss in value.

Thing is, any decent exchange will let you download your complete Tx history as a .cvs file that ya can import into a spreadsheet and do the same thing with just a little effort...

Yes... But what you're describing is Bitcoin trading, not mining?

Well if usa based and you sell any coin for any reason.

you need to report its cost basis and its sell price.

Ie. I point a s19 to a pool and mine all year long.

cost basis can be complex.

pretend you distribute 12 times a year.

you would have 12 btc deposits.

every one had a price when you got it. pretend last year your 12 deposits

were

jan 30k price giving you 300 usd in value you burned 200 in power
feb 32k price giving you 320 usd in value you burned 200 in power
mar 34k price giving you 340 usd in value you burned 200 in power
.
.
dec 48k price. giving you 480 usd in value you burned 200 in power.

the software will help track above.

not the power but the value when you got the coin.

So now you are in december you hodled the whole year.

you sell all the coin at 48k well all that coin is subject to short term cap gains.

I super super simplefied this as it is a lot more complicated.

now if you mine and only stack and hodl.

it is easier. but eventually you will do something with your coins. you will need cost basis then.

Sounds like a country-specific thing then. Here in UK, all that matters are the values at the beginning and end of each tax year, no need to count for individual transactions throughout the year.

philipma1957

legendary

Activity: 4256

Merit: 8551

'The right to privacy matters'

Quote from: danieleither on February 25, 2024, 04:59:21 PM

Quote from: NotFuzzyWarm on February 23, 2024, 06:00:44 PM

Quote from: danieleither on February 23, 2024, 02:29:16 PM

Quote from: mrwhendul on February 06, 2024, 02:06:17 PM

Looking for suggestions on BTC Mining tax software.
Does anyone have experience in this space? Looking for suggestions.
Thanks!

I'm confused why anyone would need specific software for this? Bitcoin mining has to be one of the most basic and simplest business models out there!?

Mainly to track BTC going in & out of your wallets/accounts so you can establish a Cost Basis used to determine the Capital Gains tax due.
eg you bought coins at X price and sold/spent some at Y price. If Y is larger than X you owe tax on it = to the Gain in value. Conversely if Y is lower than X you get a tax credit for the Loss in value.

Thing is, any decent exchange will let you download your complete Tx history as a .cvs file that ya can import into a spreadsheet and do the same thing with just a little effort...

Yes... But what you're describing is Bitcoin trading, not mining?

Well if usa based and you sell any coin for any reason.

you need to report its cost basis and its sell price.

Ie. I point a s19 to a pool and mine all year long.

cost basis can be complex.

pretend you distribute 12 times a year.

you would have 12 btc deposits.

every one had a price when you got it. pretend last year your 12 deposits

were

jan 30k price giving you 300 usd in value you burned 200 in power
feb 32k price giving you 320 usd in value you burned 200 in power
mar 34k price giving you 340 usd in value you burned 200 in power
.
.
dec 48k price. giving you 480 usd in value you burned 200 in power.

the software will help track above.

not the power but the value when you got the coin.

So now you are in december you hodled the whole year.

you sell all the coin at 48k well all that coin is subject to short term cap gains.

I super super simplefied this as it is a lot more complicated.

now if you mine and only stack and hodl.

it is easier. but eventually you will do something with your coins. you will need cost basis then.

danieleither

full member

Activity: 219

Merit: 426

Quote from: NotFuzzyWarm on February 23, 2024, 06:00:44 PM

Quote from: danieleither on February 23, 2024, 02:29:16 PM

Quote from: mrwhendul on February 06, 2024, 02:06:17 PM

Looking for suggestions on BTC Mining tax software.
Does anyone have experience in this space? Looking for suggestions.
Thanks!

I'm confused why anyone would need specific software for this? Bitcoin mining has to be one of the most basic and simplest business models out there!?

Mainly to track BTC going in & out of your wallets/accounts so you can establish a Cost Basis used to determine the Capital Gains tax due.
eg you bought coins at X price and sold/spent some at Y price. If Y is larger than X you owe tax on it = to the Gain in value. Conversely if Y is lower than X you get a tax credit for the Loss in value.

Thing is, any decent exchange will let you download your complete Tx history as a .cvs file that ya can import into a spreadsheet and do the same thing with just a little effort...

Yes... But what you're describing is Bitcoin trading, not mining?

NotFuzzyWarm

legendary

Activity: 3822

Merit: 2703

Evil beware: We have waffles!

Quote from: danieleither on February 23, 2024, 02:29:16 PM

Quote from: mrwhendul on February 06, 2024, 02:06:17 PM

Looking for suggestions on BTC Mining tax software.
Does anyone have experience in this space? Looking for suggestions.
Thanks!

I'm confused why anyone would need specific software for this? Bitcoin mining has to be one of the most basic and simplest business models out there!?

Mainly to track BTC going in & out of your wallets/accounts so you can establish a Cost Basis used to determine the Capital Gains tax due.
eg you bought coins at X price and sold/spent some at Y price. If Y is larger than X you owe tax on it = to the Gain in value. Conversely if Y is lower than X you get a tax credit for the Loss in value.

When coins are obtained by mining is where things get more complicated, for them your Cost Basis would be what it cost you to mine them and what their value was when mined. Assuming you are setup as a business then things like your electric bill, building expenses, cost of the miners, etc. are all business expenses that can be written off.

Thing is, any decent exchange will let you download your complete Tx history as a .cvs file that ya can import into a spreadsheet and do the same thing with just a little effort...

danieleither

full member

Activity: 219

Merit: 426

Quote from: mrwhendul on February 06, 2024, 02:06:17 PM

Looking for suggestions on BTC Mining tax software.

Does anyone have experience in this space? Looking for suggestions.

Thanks!

I'm confused why anyone would need specific software for this? Bitcoin mining has to be one of the most basic and simplest business models out there!?

philipma1957

legendary

Activity: 4256

Merit: 8551

'The right to privacy matters'

Quote from: ABCbits on February 08, 2024, 05:40:55 AM

Quote from: philipma1957 on February 06, 2024, 04:56:41 PM

https://www.bitcoin.tax/ and they are not that good.

I'm not miner, but do you mind elaborate a bit why it's not that good? Is it because it only support 6 countries?

I have 1000 to 10000 entries.

It does some of them, but I end up spending hours making the return fully correct.

They kind of give you half assed setup when you import and you need to organize it.

But they endlessly say is this too hard talk to us we can do it for you.

Which means they know the software is not quite organized enough.

While I can't prove the software is a bit short to generate you asking them to do the return I have an accounting the degree and I can tell you you need a fair amount of accounting trading to use the software.

NotATether

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bitcoincleanup.com / bitmixlist.org

You'll probably need to consult a lawyer in order to make sure you file them properly.

ABCbits

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Activity: 2870

Merit: 7490

Crypto Swap Exchange

Quote from: philipma1957 on February 06, 2024, 04:56:41 PM

https://www.bitcoin.tax/ and they are not that good.

I'm not miner, but do you mind elaborate a bit why it's not that good? Is it because it only support 6 countries?

philipma1957

legendary

Activity: 4256

Merit: 8551

'The right to privacy matters'

Quote from: mrwhendul on February 06, 2024, 02:06:17 PM

Looking for suggestions on BTC Mining tax software.

Does anyone have experience in this space? Looking for suggestions.

Thanks!

https://www.bitcoin.tax/ and they are not that good.

I have an accounting degree and I can tell you it is work to get a return done using them.

mrwhendul

newbie

Activity: 2

Merit: 0

Looking for suggestions on BTC Mining tax software.

Does anyone have experience in this space? Looking for suggestions.

Thanks!

Topic: Bitcoin Mining Tax Software (Read 245 times)