Topic: claiming my Mining operations as a business (Read 180 times)
In my standard that’s not to be considered business with that small amount of capital.. Only if the government officials demands you on calling so but that’s so unjustify if they should.. Remind you that’s only a gaming hardware that is common in a household,, so it can’t be labelled higher than that.. So don’t take much responsibility on declaring that might hurt your profits..
Yes you can make the crypto mining operation can be considered as a business if you invest in the mining machine then you can expect only profit from it
legendary
Activity: 1358
Merit: 1565
The first decentralized crypto betting platform
It is not a business as you are neither providing goods nor services to other people therefore making what you are doing as a passive income. And do you really want you 1.50 to 2.00$/ day to be taxed by your government? From what you are doing declaring your mining operation as a business will make you have additional taxes aside from income tax. I don't even know what is the purpose of making your little mining rig a business as there are no pros on proceeding so.
does a business have to provide services/goods to other people? What about large scale mining then - dont they establish themselves as a business?
In my country you don’t have other option rather than to declare it as a business. If you mine, you are legally obliged to declare it a such for tax reasons. What country do you live in? You have been asked already but haven’t replied. Laws vary from country to country and what is true in one country might not be in the other one.
USA
It seems it is arguable if mining can be considered to be a business or not, I think it depends on size, but what seems clear is that you can deduct your expenses.
http://theminersunion.com/2017/09/11/what-you-need-to-know-about-bitcoin-mining-taxes/
I just bought a computer two weeks ago and it generates about 1.50-2.00/day on a 1050ti. Im looking return the 1050ti and purchase 2 gpu before year end, probably 2x 1070/1070ti. 7.50 gross revenue/day according to whattomine.
my computer costs should be around $1300 once i purchase the gpus..
additionally I purchased $1300 in bitcoin/altcoins. traded a few times, i realized about $300 USD in losses so far.
My electricity costs I have not determined yet (whattomine says .70/day). My business use of home: occupying 10x10 space in 1500 sq ft home (500/month housing expenses). if i dedicate my weekday evenings and all weekend to the business, I figure I'll also be able to deduct for meals (11 meals x $10 avg) and vehicle use while on business (estimate 100miles/week going to crypto business meetings/conferences/forums/ventures)
does this qualify as a business? how would the revenue/expenses deductions /taxes look like for 2017?
my computer costs should be around $1300 once i purchase the gpus..
additionally I purchased $1300 in bitcoin/altcoins. traded a few times, i realized about $300 USD in losses so far.
My electricity costs I have not determined yet (whattomine says .70/day). My business use of home: occupying 10x10 space in 1500 sq ft home (500/month housing expenses). if i dedicate my weekday evenings and all weekend to the business, I figure I'll also be able to deduct for meals (11 meals x $10 avg) and vehicle use while on business (estimate 100miles/week going to crypto business meetings/conferences/forums/ventures)
does this qualify as a business? how would the revenue/expenses deductions /taxes look like for 2017?
If bitcoin is legally declared in your country then you are oblige to follow the rules of regulation of all forms of bitcoin earning and that include the mining in which subject to tax but if bitcoins is not declared legal and not ban you can enjoy earning without tax. You don't need to declare it as a business type because only commercial type of businesses are subject for income tax like here in our country.
It can be determined as a business if you'll declare of doing it so. There are special questions that might be thrown to you but here in my country there are miners that are declaring mining as their business just for the sake of authorization and taxation. They don't want to avoid taxation and it's much better to declare it as their very own business operation but others aren't taking any legal action on it and remains to avoid tax.
Yes, this all depends on the person if he wants to declare this operation as an open business or would just keep it for himself since the mining income is not yet that stable and big. I am sure the government would not yet be knocking on the person's doorsteps looking for their share of the revenue. However, each country has different sets of law on taxation and different levels of implementation. In case a person is into a country where all nook and cranny can be known, then it would be better to declare and pay appropriate taxes to avoid getting entangled with the authorities.
It is not a business as you are neither providing goods nor services to other people therefore making what you are doing as a passive income. And do you really want you 1.50 to 2.00$/ day to be taxed by your government? From what you are doing declaring your mining operation as a business will make you have additional taxes aside from income tax. I don't even know what is the purpose of making your little mining rig a business as there are no pros on proceeding so.
does a business have to provide services/goods to other people? What about large scale mining then - dont they establish themselves as a business?
In my country you don’t have other option rather than to declare it as a business. If you mine, you are legally obliged to declare it a such for tax reasons. What country do you live in? You have been asked already but haven’t replied. Laws vary from country to country and what is true in one country might not be in the other one.
It is not a business as you are neither providing goods nor services to other people therefore making what you are doing as a passive income. And do you really want you 1.50 to 2.00$/ day to be taxed by your government? From what you are doing declaring your mining operation as a business will make you have additional taxes aside from income tax. I don't even know what is the purpose of making your little mining rig a business as there are no pros on proceeding so.
does a business have to provide services/goods to other people? What about large scale mining then - dont they establish themselves as a business?
In my country you don’t have other option rather than to declare it as a business. If you mine, you are legally obliged to declare it a such for tax reasons. What country do you live in? You have been asked already but haven’t replied. Laws vary from country to country and what is true in one country might not be in the other one.
USA
legendary
Activity: 1358
Merit: 1565
The first decentralized crypto betting platform
It is not a business as you are neither providing goods nor services to other people therefore making what you are doing as a passive income. And do you really want you 1.50 to 2.00$/ day to be taxed by your government? From what you are doing declaring your mining operation as a business will make you have additional taxes aside from income tax. I don't even know what is the purpose of making your little mining rig a business as there are no pros on proceeding so.
does a business have to provide services/goods to other people? What about large scale mining then - dont they establish themselves as a business?
In my country you don’t have other option rather than to declare it as a business. If you mine, you are legally obliged to declare it a such for tax reasons. What country do you live in? You have been asked already but haven’t replied. Laws vary from country to country and what is true in one country might not be in the other one.
It is not a business as you are neither providing goods nor services to other people therefore making what you are doing as a passive income. And do you really want you 1.50 to 2.00$/ day to be taxed by your government? From what you are doing declaring your mining operation as a business will make you have additional taxes aside from income tax. I don't even know what is the purpose of making your little mining rig a business as there are no pros on proceeding so.
does a business have to provide services/goods to other people? What about large scale mining then - dont they establish themselves as a business?
I just bought a computer two weeks ago and it generates about 1.50-2.00/day on a 1050ti. Im looking return the 1050ti and purchase 2 gpu before year end, probably 2x 1070/1070ti. 7.50 gross revenue/day according to whattomine.
my computer costs should be around $1300 once i purchase the gpus..
additionally I purchased $1300 in bitcoin/altcoins. traded a few times, i realized about $300 USD in losses so far.
My electricity costs I have not determined yet (whattomine says .70/day). My business use of home: occupying 10x10 space in 1500 sq ft home (500/month housing expenses). if i dedicate my weekday evenings and all weekend to the business, I figure I'll also be able to deduct for meals (11 meals x $10 avg) and vehicle use while on business (estimate 100miles/week going to crypto business meetings/conferences/forums/ventures)
does this qualify as a business? how would the revenue/expenses deductions /taxes look like for 2017?
Depending on which country you do reside on since the thing you are doing here if you do it on our country it would really be still consider as a hobby and you can still able to deny that you are just doing small scale but on some countries where these kind earning money would be considered as a business where you would really need to pay up taxes or even have a business permit which Is somehow hassle and a hindrance for us to make such mining but you can actually hide this thing. my computer costs should be around $1300 once i purchase the gpus..
additionally I purchased $1300 in bitcoin/altcoins. traded a few times, i realized about $300 USD in losses so far.
My electricity costs I have not determined yet (whattomine says .70/day). My business use of home: occupying 10x10 space in 1500 sq ft home (500/month housing expenses). if i dedicate my weekday evenings and all weekend to the business, I figure I'll also be able to deduct for meals (11 meals x $10 avg) and vehicle use while on business (estimate 100miles/week going to crypto business meetings/conferences/forums/ventures)
does this qualify as a business? how would the revenue/expenses deductions /taxes look like for 2017?
It is not a business as you are neither providing goods nor services to other people therefore making what you are doing as a passive income. And do you really want you 1.50 to 2.00$/ day to be taxed by your government? From what you are doing declaring your mining operation as a business will make you have additional taxes aside from income tax. I don't even know what is the purpose of making your little mining rig a business as there are no pros on proceeding so.
If you're in the United States, it may qualify as a business, but due to your current setup, it will be treated as self-employment income which comes with a whole host of tax headaches. If you don't have an accountant and don't wish to get one, it might be best to just claim it as hobby income and forego the deductions. IF you really do want to claim the deductions, I highly recommend setting it up in a limited liability entity such as a c-corporation, s-corporation, or (single-member?) LLC. Doing this will give you an airtight claim to business deductions while also giving you tax planning opportunities to scale your operation in the future
It can be determined as a business if you'll declare of doing it so.
There are special questions that might be thrown to you but here in my country there are miners that are declaring mining as their business just for the sake of authorization and taxation.
They don't want to avoid taxation and it's much better to declare it as their very own business operation but others aren't taking any legal action on it and remains to avoid tax.
There are special questions that might be thrown to you but here in my country there are miners that are declaring mining as their business just for the sake of authorization and taxation.
They don't want to avoid taxation and it's much better to declare it as their very own business operation but others aren't taking any legal action on it and remains to avoid tax.
I just bought a computer two weeks ago and it generates about 1.50-2.00/day on a 1050ti. Im looking return the 1050ti and purchase 2 gpu before year end, probably 2x 1070/1070ti. 7.50 gross revenue/day according to whattomine.
my computer costs should be around $1300 once i purchase the gpus..
additionally I purchased $1300 in bitcoin/altcoins. traded a few times, i realized about $300 USD in losses so far.
My electricity costs I have not determined yet (whattomine says .70/day). My business use of home: occupying 10x10 space in 1500 sq ft home (500/month housing expenses). if i dedicate my weekday evenings and all weekend to the business, I figure I'll also be able to deduct for meals (11 meals x $10 avg) and vehicle use while on business (estimate 100miles/week going to crypto business meetings/conferences/forums/ventures)
does this qualify as a business? how would the revenue/expenses deductions /taxes look like for 2017?
my computer costs should be around $1300 once i purchase the gpus..
additionally I purchased $1300 in bitcoin/altcoins. traded a few times, i realized about $300 USD in losses so far.
My electricity costs I have not determined yet (whattomine says .70/day). My business use of home: occupying 10x10 space in 1500 sq ft home (500/month housing expenses). if i dedicate my weekday evenings and all weekend to the business, I figure I'll also be able to deduct for meals (11 meals x $10 avg) and vehicle use while on business (estimate 100miles/week going to crypto business meetings/conferences/forums/ventures)
does this qualify as a business? how would the revenue/expenses deductions /taxes look like for 2017?
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