Topic: Do miners pay TAX over their earnings?? (Read 7039 times)
Don't feed the pigs your bitcoin revenue.
also miners should not pay taxes, because they are actually already paying those, via electricity bills, so it is included
if miners are intelligent they should keep their bitcoin and dump only for paying electricity, which is their taxes
if miners are intelligent they should keep their bitcoin and dump only for paying electricity, which is their taxes
Miners should keep track of gear purchased, any expenses. For example my summer mining area caused a decent expense. And of course electricity used.
For me converting into a nice summer area with wiring and everything was a pretty good amount of expense. It was worth it yes but for taxes I record everything as far as costs.
I run a small mining operation in Australia and we pay our tax, in fact we're always dealing with the accountant to keep the books up to date.
We pay tax on the income we earn through bitcoin mined, bitcoin traded and from all the sales made when re-selling mining equipment.
We pay tax on the income we earn through bitcoin mined, bitcoin traded and from all the sales made when re-selling mining equipment.
That's good to know.
Though I wonder if taxes include the Bitcoin price change (for example, if Bitcoin value raises regarding Fiat currency)
I run a small mining operation in Australia and we pay our tax, in fact we're always dealing with the accountant to keep the books up to date.
We pay tax on the income we earn through bitcoin mined, bitcoin traded and from all the sales made when re-selling mining equipment.
We pay tax on the income we earn through bitcoin mined, bitcoin traded and from all the sales made when re-selling mining equipment.
Miners don't pay taxes because mining has nothing to do with united states currency. Maybe if you have a mining operation close to the point where it's earning enough as a second job, and you're converting the bitcoin into usd on a consistent basis you would want to look into it, but if you're only dealing in bitcoins there's no reason you should have to pay taxes on anything, all you're doing is simply using your electricity to solve calculations 
Yes they should.
Do they? .... probably not ....
Also completely depends on location.
Do they? .... probably not ....
Also completely depends on location.
@amph, what if the government of the country subsidizes electricity and actually loses money in the sales of electrcicity?
look at it, like it was another thing, for example instead of mining you pay a big portion of your electricity, because you need to wash clothes every hour or you need to eat foods only cooked in the oven(standard oven consume 1k per hour), you will need to pay a tons of electricity for that
do you need to pay taxes on top of that? i don't think so
@amph, what if the government of the country subsidizes electricity and actually loses money in the sales of electrcicity?
also miners should not pay taxes, because they are actually already paying those, via electricity bills, so it is included
if miners are intelligent they should keep their bitcoin and dump only for paying electricity, which is their taxes
if miners are intelligent they should keep their bitcoin and dump only for paying electricity, which is their taxes
I believe tax should paid only if mined BTC sold right away. So one pays for selling, not mining.
Another analogy. You do not pay taxes for fruits growing in your garden. Until you sell those fruits.
Another analogy. You do not pay taxes for fruits growing in your garden. Until you sell those fruits.
Naturally miners don't pay tax over their earnings but tax can be included when converting to fiat but spending bitcoin directly is tax-free.
Mining is an open accounting system which is purely based on peer to peer networking system, and the users in the network helps each other to send and receive the payments safely and securely without being any involvement of central authority, so there is no way that the terms of Tax applicable occurs here.
well all countries need to be able to let governement know of peopes actions but not impose taxes let them peope be more aware of the need to be taxxed and let the polititians do the work in countries that are needed of bitcoin if the tax of mining and all bitcoin trades come to majoity of countries they are able to put bitcoin into 1000 dollars a pieace and tha can also be good the tax aceptacy and less anon of the coin
Don't tell the government, but I never put it on my earnings.
I live in the us.
I ended up losing money though, so it didn't matter. But I wouldn't of anyway.
I live in the us.
I ended up losing money though, so it didn't matter. But I wouldn't of anyway.
Seems like many of you are interested in this topic. For me one answer stands out. Let's agree all not to pay tax. And if our Bitcoin becomes more valuable compared to your desired currency and we get rich, help others. In my opinion we are paying enough tax and it does not help us. I currently live in the Netherlands, my operation wil hopefully launch in 3 weeks. Operating from KRG region near boarders of Turkey. We have no currency and why not take Bitcoin and be a step ahead?
it is better to pay the bills with your real job and leave bitcoin earned from mining, in cold storage for now, so you can avoid any issues with taxes, and you do not need to pay them at all
if you are forced to use bitcoin, by dumping them because of emergency you can stay below 600 in one year for USA, or below 1k in one year for European(they are starting to take action against this)
Seems like many of you are interested in this topic. For me one answer stands out. Let's agree all not to pay tax. And if our Bitcoin becomes more valuable compared to your desired currency and we get rich, help others. In my opinion we are paying enough tax and it does not help us. I currently live in the Netherlands, my operation wil hopefully launch in 3 weeks. Operating from KRG region near boarders of Turkey. We have no currency and why not take Bitcoin and be a step ahead?
I thought that when you transfer the virtual money into US currency then it is extra income in US dollars. Come tax time I could include say 100 dollars as income. I have no income now and just if I were mowing lawns would include this earned income. I wonder if I can just say mining is my side job so any extra income I can report once it is transferred into USD from Bitcoin.
The difficult part is what to submit with the tax form since the 100 dollars doesn't come with a W2 form. I know their are earned income thresholds. The scenerio is I have no income now and would like to convert a bitcoin into us dollars into my bank account. Did I earn the income from working as a miner? Did some one just pay me 100 dollars for work i.e mowing the lawn. Can one just report income from this side job and what is needed for proof of payment?
The difficult part is what to submit with the tax form since the 100 dollars doesn't come with a W2 form. I know their are earned income thresholds. The scenerio is I have no income now and would like to convert a bitcoin into us dollars into my bank account. Did I earn the income from working as a miner? Did some one just pay me 100 dollars for work i.e mowing the lawn. Can one just report income from this side job and what is needed for proof of payment?
I would assume it depends on the jurisdiction. Obviously, in the US, you would have to pay tax on miner earnings. I'm not sure about other places.
Please let me know if you have Knowledge or experience with this.
I would never make mining a full time job and I refuse to pay taxes on my hobby. That is where I stand.
Work and pay your taxes. Keep your BTC for "fun" ;
P.S. Don't buy a Lamborghini if you can't afford one with your day job!
Mining is on a need to know basis and NOBODY needs to know! 
For Australian's Knowledge...
The ATO ruled that if u mine as a company for profit u must pay tax.
As an individual u can earn up to $10,000 before any tax is paid..
As a Aussie individual with 3th of power (I know its not much but prob more than most) i have only made about 12 coins in the last 12 month at approx $300 a coin thats $3600 minus about the same in power costs i neither made nor lost money
Not that the tax man should get any of it anyway, Greedy bastard he is..
The ATO ruled that if u mine as a company for profit u must pay tax.
As an individual u can earn up to $10,000 before any tax is paid..
As a Aussie individual with 3th of power (I know its not much but prob more than most) i have only made about 12 coins in the last 12 month at approx $300 a coin thats $3600 minus about the same in power costs i neither made nor lost money
Not that the tax man should get any of it anyway, Greedy bastard he is..
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