Do miners pay TAX over their earnings?? - page 2.

ChineseSavior

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Quote from: DrG on April 28, 2015, 08:32:01 PM

Quote from: ChineseSavior on April 28, 2015, 08:23:38 PM

Quote from: mrhelpful on April 28, 2015, 10:59:38 AM

Quote from: Mehek on April 28, 2015, 08:41:46 AM

Quote from: zekarsalih on April 22, 2015, 11:25:23 AM

Please let me know if you have Knowledge or experience with this.

yes bitcoin miners or any other cryptocurrency miner needs to pay tax too..and additnally they have to pay the electricity bills and many more..hope u go for asic mining

NO you dont. You can choose to not pay.

Why ever you pay tax? thats free all cash in hand type of money, but if you want to pay extra be my guest. Elecrcity bills is the only bill so I dont know what else which you need to pay regardless if it wasnt mining youd still be paying for.

The difference is not depositing the money in a checkings account.

exactly. You choose to pay tax.

bitcoin is about changing and decentralizing the /'system'' continuing to pay into the empire kitty is only perpetuating the cycle that is everything bitcoin stands to topple!

Empire kitty? I bet you have one of those hipster Anonymous V for Vendetta masks as well. Stop being a leech and support the infrastructure for things like the electrical grid and healthcare that you are indirectly (ie immunizations for the masses) and directly (internet access that you have access to without some random company censoring everything you write) using.

The 12 year old children on this forum....

thread closed

Bitsaurus

hero member

Activity: 873

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I can see the little kids have come out to post since mom must be late from work. If it's there's an income derived from it there is the duty to pay tax - you don't have to overpay and can use all the correct deductions, but it is still a duty.

Those babbling on about military industrial complexes wouldn't bother to help a woman getting mugged let alone ever enlist to defend their homeland. It's easy for cowards to press those 110 keys in their ergo chairs...

DrG

legendary

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Quote from: ChineseSavior on April 28, 2015, 08:23:38 PM

Quote from: mrhelpful on April 28, 2015, 10:59:38 AM

Quote from: Mehek on April 28, 2015, 08:41:46 AM

Quote from: zekarsalih on April 22, 2015, 11:25:23 AM

Please let me know if you have Knowledge or experience with this.

yes bitcoin miners or any other cryptocurrency miner needs to pay tax too..and additnally they have to pay the electricity bills and many more..hope u go for asic mining

NO you dont. You can choose to not pay.

Why ever you pay tax? thats free all cash in hand type of money, but if you want to pay extra be my guest. Elecrcity bills is the only bill so I dont know what else which you need to pay regardless if it wasnt mining youd still be paying for.

The difference is not depositing the money in a checkings account.

exactly. You choose to pay tax.

bitcoin is about changing and decentralizing the /'system'' continuing to pay into the empire kitty is only perpetuating the cycle that is everything bitcoin stands to topple!

Empire kitty? I bet you have one of those hipster Anonymous V for Vendetta masks as well. Stop being a leech and support the infrastructure for things like the electrical grid and healthcare that you are indirectly (ie immunizations for the masses) and directly (internet access that you have access to without some random company censoring everything you write) using.

The 12 year old children on this forum....

ChineseSavior

sr. member

Activity: 366

Merit: 250

Quote from: mrhelpful on April 28, 2015, 10:59:38 AM

Quote from: Mehek on April 28, 2015, 08:41:46 AM

Quote from: zekarsalih on April 22, 2015, 11:25:23 AM

Please let me know if you have Knowledge or experience with this.

yes bitcoin miners or any other cryptocurrency miner needs to pay tax too..and additnally they have to pay the electricity bills and many more..hope u go for asic mining

NO you dont. You can choose to not pay.

Why ever you pay tax? thats free all cash in hand type of money, but if you want to pay extra be my guest. Elecrcity bills is the only bill so I dont know what else which you need to pay regardless if it wasnt mining youd still be paying for.

The difference is not depositing the money in a checkings account.

exactly. You choose to pay tax.

bitcoin is about changing and decentralizing the /'system'' continuing to pay into the empire kitty is only perpetuating the cycle that is everything bitcoin stands to topple!

DebitMe

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Get Paid Crypto To Walk or Drive

Quote from: mrhelpful on April 28, 2015, 10:59:38 AM

Quote from: Mehek on April 28, 2015, 08:41:46 AM

Quote from: zekarsalih on April 22, 2015, 11:25:23 AM

Please let me know if you have Knowledge or experience with this.

yes bitcoin miners or any other cryptocurrency miner needs to pay tax too..and additnally they have to pay the electricity bills and many more..hope u go for asic mining

NO you dont. You can choose to not pay.

Why ever you pay tax? thats free all cash in hand type of money, but if you want to pay extra be my guest. Elecrcity bills is the only bill so I dont know what else which you need to pay regardless if it wasnt mining youd still be paying for.

The difference is not depositing the money in a checkings account.

This is the most uneducated post I have ever read, which leaves me to believe that the only reason you haven't been audited and found guilty of tax evasion is because you don't make enough for it to be worth it from the IRS's standpoint. You can also choose to rob a store, but its still illegal! Also, the IRS can still know if you are hiding cash if it never hits your bank account. Don't be an idiot and keep your dumb opinions to yourself.

mrhelpful

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Quote from: Mehek on April 28, 2015, 08:41:46 AM

Quote from: zekarsalih on April 22, 2015, 11:25:23 AM

Please let me know if you have Knowledge or experience with this.

yes bitcoin miners or any other cryptocurrency miner needs to pay tax too..and additnally they have to pay the electricity bills and many more..hope u go for asic mining

NO you dont. You can choose to not pay.

Why ever you pay tax? thats free all cash in hand type of money, but if you want to pay extra be my guest. Elecrcity bills is the only bill so I dont know what else which you need to pay regardless if it wasnt mining youd still be paying for.

The difference is not depositing the money in a checkings account.

Mehek

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Quote from: zekarsalih on April 22, 2015, 11:25:23 AM

Please let me know if you have Knowledge or experience with this.

yes bitcoin miners or any other cryptocurrency miner needs to pay tax too..and additnally they have to pay the electricity bills and many more..hope u go for asic mining

DebitMe

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Get Paid Crypto To Walk or Drive

Quote from: STT on April 27, 2015, 08:31:32 PM

What earnings, you shouldnt be paying taxes unless you are well into the profit and most who think they made alot of money are not including their costs properly. A business can carry over losses for six years against profits hence you get those headlines, megacorp makes record profits but operates tax free. People have to be more careful but I reckon you should not pay tax on your little home operation.
Any 'profits' Ive made I just used to buy computer parts, since I need it as part of the operation I think its allowable cost against earnings

New rule of the thread, unless you have read the tax code of your respective country, and the rulings about how bitcoin is taxed, you are not allowed to post in this thread.

The countless, "opinions" expressed are not only wrong, but severely misleading to someone who may sincerely want to know how they should be treating their bitcoin earnings. You, like many before you, are unknowledgeable in the matter, wrong, and spreading misinformation on your opinion.

NUFCrichard

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Quote from: STT on April 27, 2015, 08:31:32 PM

What earnings, you shouldnt be paying taxes unless you are well into the profit and most who think they made alot of money are not including their costs properly. A business can carry over losses for six years against profits hence you get those headlines, megacorp makes record profits but operates tax free. People have to be more careful but I reckon you should not pay tax on your little home operation.
Any 'profits' Ive made I just used to buy computer parts, since I need it as part of the operation I think its allowable cost against earnings

You still need to file the returns to show the capital losses of the last few years so that you can claim them back now that you make the capital gains.
You 'reckon' they shouldn't pay, but if someone from the IRS looks into it, they will disagree with you.

The point about not paying tax on selling second hand stuff, if you have already deducted it, then you would have to pay tax on the 2nd hand sales. They won't let you double count it.

Bitcoin mining is an absolute tax mess! I wonder if the IRS will be bothered about it unless someone starts making millions from it.

STT

legendary

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What earnings, you shouldnt be paying taxes unless you are well into the profit and most who think they made alot of money are not including their costs properly. A business can carry over losses for six years against profits hence you get those headlines, megacorp makes record profits but operates tax free. People have to be more careful but I reckon you should not pay tax on your little home operation.
Any 'profits' Ive made I just used to buy computer parts, since I need it as part of the operation I think its allowable cost against earnings

Cinnob0n

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-Credits (CRE) Miner/Enthusiast

it depends where do live and what nodes relay your transactions.

ChineseSavior

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DO NOT PAY TO IRS puertorican KITTY DO NOT PERPETUATE TYRANNIC EMPIRE

all usa comes tumbling down as the break out shackles and chains to try to force citizens to pay...

problem solved...

Why are we still discussing taxes Huh

redhunter

newbie

Activity: 25

Merit: 0

For those in the U.S. you should read the following guidance from the IRS:

It will answer many of the questions in this thread and correct some mis-information.

http://www.irs.gov/pub/irs-drop/n-14-21.pdf

redhunter

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Quote from: Amph on April 26, 2015, 02:59:35 AM

... what i mean is that usually you don't gain anything on second hand stuff, unless you manage to sell it at a higher price than the one which you bought it

so if you bought a 5k thing, then you will probably sell it at 4k or less(if you are good enough), and there is no gain here....so it should not be taxable

You have no income in your example assuming it is a non-business asset. Generally the term income in the U.S. for tax and accounting purposes is defined as revenue less expenses.

However, if you bought a used S3 for $100 and you report your revenue and expenses of your mining operation as a sole proprietorship on a Form 1040 Schedule C, you may have taken a §179 deduction for the purchase price of the S3. If that's the case and you sell it later for $90, you will have a taxable gain of $90.

DebitMe

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Get Paid Crypto To Walk or Drive

Quote from: Kprawn on April 26, 2015, 06:36:55 AM

If you want to tax this, it surely has to be with Capital gains taxes.

So you subtract your utilities {electricity cost} and the mining hardware cost to acquire the real "profit" you made after you sold the coins.

Some people only reach ROI or make a profit after years, so it's difficult to know what or when to tax.

For some people, it's actually a expense, and they never reach ROI or a profit for that matter. Sad

The electricity costs do not factor into the capital gains tax owed. The hardware price would. It is not difficult to know what to tax, you just have to keep track. I do not think you know what your talking about based on your answer to be honest. Please read above where I talked about capital gains and self employment tax. They are very separate and both apply to different aspects of mining.

ChineseSavior

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Quote from: zekarsalih on April 26, 2015, 11:00:06 AM

Yes that answer definitly tells a lot about you.

kick rocks shill. Go enjoy that quarantine. Says what that I enjoy living free and not paying into the military / medical / prison industrial complex and perptuate the hamster wheel cycle?

@zekarsalih are you sure you came to the right forums? BTC is about trust and freedom? Are you sure you did not mean to go to the www.ObamaForThirdForum.com ?

Roll Eyes

the only waay to change the shit show in the usa is to quit paying into the empires kitty. All of these political marches, protests, free keene, film the police, etc etc are useless if these same people are paying into the emire....

you want some real ''change''.. Quit paying into their system. Pun n tenders. Shoot i meant pun intended.

discontinuing use of your drivers license and paying into that system is another great way to stick it to da man.

#uber

#notax

#freedom

zekarsalih

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Yes that answer definitly tells a lot about you.

ChineseSavior

sr. member

Activity: 366

Merit: 250

only little b*tches that support and enslavement tyrannic empire pay taxes.

flee the usa or any other country and get offshore to sovereign water / land. While you still can...

Not even close to kidding.

hope this helps w your answers.

Kprawn

legendary

Activity: 1904

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If you want to tax this, it surely has to be with Capital gains taxes.

So you subtract your utilities {electricity cost} and the mining hardware cost to acquire the real "profit" you made after you sold the coins.

Some people only reach ROI or make a profit after years, so it's difficult to know what or when to tax.

For some people, it's actually a expense, and they never reach ROI or a profit for that matter. Sad

Amph

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Quote from: DebitMe on April 25, 2015, 11:41:20 PM

Quote from: Amph on April 25, 2015, 02:48:21 PM

Quote from: redhunter on April 25, 2015, 11:43:06 AM

Quote from: Amph on April 25, 2015, 06:52:08 AM

[... some income are not taxable especially if they come from second hand stuff, also below a certain amount you are not taxable at all no matter what you are doing

Again this is for the U.S. and for income tax purposes: some income is not subject to tax like interest on municipal bonds, however there is no de minimis exception on income that is otherwise taxable including selling second hand stuff at a profit. There are de minimis thresholds for reporting income if you are a payor. For example a bank or brokerage firm doesn't need to give you a 1099 if your account earned less than $10. That doesn't mean your nominal interest income isn't taxable, it just means that the bank doesn't need to report it to you or the IRS.

For sales/use tax purposes, some jurisdictions in the U.S. exempt sales on second hand personal items like in a garage sale.

it does not make sense to tax a second hand stuff, otherwise if i continued on selling second hand stuff at the end of the day i would be in negative on that item/items...

Here is the best way to think about it (apart from reading the code), if today you are worth $5000 and tomorrow you are worth $5001, 99.9% of the time, whatever you did is a taxable event.

For anyone wondering, whether you mine, buy/sell bitcoin, buy/sell bitcoin equipment, really anything you do crypto related, is taxable in one way or another in the United States.

what i mean is that usually you don't gain anything on second hand stuff, unless you manage to sell it at a higher price than the one which you bought it

so if you bought a 5k thing, then you will probably sell it at 4k or less(if you are good enough), and there is no gain here....so it should not be taxable

Topic: Do miners pay TAX over their earnings?? - page 2. (Read 7043 times)