Do miners pay TAX over their earnings?? - page 4.

NUFCrichard

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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 you have to, but only on any profits you make, so probably not for most people, or very little.
It will be very hard to keep a track of, as each time you mine you will have gained capital, what is the price of that capital and what percentage of that is profit? I guess you would work it out purely from a mining - electricity cost, then deduct the costs of computers, miners, coolers etc that you bought later.

There is software out there that can be used to help traders work out their tax to be paid, I guess that should work for mining too, luckily (kind of) the price of bitcoin is so low that most people are losing money and are tax exempt. Don't forget to write that off next year as a capital loss though!

vennali

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#SWGT CERTIK Audited

Its always recommended and legally bound to pay taxes for any mining operations, however if you are in a country where the laws aren't strict then you may get away by not paying your taxes.

Quote from: DebitMe on April 23, 2015, 10:55:56 AM

As to how the government would know, there are a variety of ways, and all of them end up with accusing you of fraud and forcing you to pay the tax, as well as, penalties and interest that will probably amount to more than you would owe originally. Add in your time wasted responding to the IRS, and it would be much easier to just pay the tax up front and not lie to the government.

As for that, I don't think governments of countries in Asia really know much about bitcoin or care about it, so yes you may skip, but to avoid any legal problem in the future, its best to pay it .

fr4nkthetank

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Now the money is free, and so the people will be

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

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

doesn't matter if you sell lemonade, apple pies or bitcoin mining. you pay tax on all earnings. of course, if you sell 250$ worth of lemonade you don't really have to declare it because its too small. there is a threshold for declaration.

DebitMe

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Quote from: josef2000 on April 23, 2015, 10:50:51 AM

I think personal/private miners do not need to pay any tax if their income isnt big enough. Also, how should the government know that you are mining coins?!
But big companies that mine bitcoin will probably need to pay taxes if their getting alot of money. But also, how does the government know that you are mining? They have no proof until you show them your mining facility

Do not spread FUD when you have no idea what your talking about. Just because, "you think" doesn't mean it is true, especially when there are plenty of more knowledgeable people above you giving the exact opposite response.

As to how the government would know, there are a variety of ways, and all of them end up with accusing you of fraud and forcing you to pay the tax, as well as, penalties and interest that will probably amount to more than you would owe originally. Add in your time wasted responding to the IRS, and it would be much easier to just pay the tax up front and not lie to the government.

josef2000

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Bro, you need to try http://dadice.com

I think personal/private miners do not need to pay any tax if their income isnt big enough. Also, how should the government know that you are mining coins?!
But big companies that mine bitcoin will probably need to pay taxes if their getting alot of money. But also, how does the government know that you are mining? They have no proof until you show them your mining facility

zekarsalih

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I agree with you guys and was thinking the same. I am mining in Kurdistan (Irak). It has no tax regulations and if I chose to scale up, my benefit would be that taxes are zero and electricity is 0.05 ct for large scale operations ( current price for my operation @ around 10 TH is 0.02 ct.).
Low electricity, no tax....

Are their still people looking for hosting at those prices you guys think? Since I wont be spending very much on electricity and other expenses.

DebitMe

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Quote from: sherbyspark on April 22, 2015, 02:46:47 PM

I don't really think many Miners do pay taxes. The current income mining generates is anyway very low, and many people simply avoid the taxes, apart from a few people.
The big mining companies, must be paying it due to obvious reasons , but at a personal level I very much doubt it. Even the daily bitcoin user, has only a small percentage who report taxes on money earned .

Regardless, whether or not a person chooses to pay it, legally, you have to. And I guarantee that omitting disclosing the income on your tax returns will land you with much bigger fines from penalty and interest than actually giving it a good attempt. Just because everyone else jumped off a bridge does not make it a good idea. The law clearly states it must be claimed.

sherbyspark

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I don't really think many Miners do pay taxes. The current income mining generates is anyway very low, and many people simply avoid the taxes, apart from a few people.
The big mining companies, must be paying it due to obvious reasons , but at a personal level I very much doubt it. Even the daily bitcoin user, has only a small percentage who report taxes on money earned .

Retired

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Quote from: Blazr on April 22, 2015, 12:24:20 PM

Yes typically in most countries you will have to pay some kind of tax on most income, this can include income on bitcoin mining.

You really need to talk to a tax advisor or a lawyer to get a better answer.

Exact. As well as the capital gains you might have from the Bitcoin Price Movements, as said above.

DebitMe

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Quote from: Blazr on April 22, 2015, 12:24:20 PM

Yes typically in most countries you will have to pay some kind of tax on most income, this can include income on bitcoin mining.

You really need to talk to a tax advisor or a lawyer to get a better answer.

As a very broad answer, this is perfect. I do not understand at all what your saying and have done nothing but try to provide the exact help you asked for, but there are hundreds of countries across the world, and each of them have their own tax rules. Compound that with the fact that each customer may live in a different country with different tax rules and it is quickly revealed that you need to seek a person who is qualified in the area you want to do business in (and is fluent in your language, because your not getting your point across in English).

Blazr

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Yes typically in most countries you will have to pay some kind of tax on most income, this can include income on bitcoin mining.

You really need to talk to a tax advisor or a lawyer to get a better answer.

zekarsalih

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First of all, Who has chose you to represent them? Please be more specific. I am not planning to put any business plan on a forum like this, I have been helpen a lot by Peopl. If you chose not to help, dont rereply. However, if this is a cultural misunderstanding and you are interested in my plan, tell me.

I want to know my financial benefit from having no taxes on all my mining earnings.

Major operations in other countries do have this, do they Apple by it? Since bitcoin is hard to tracé. Are their different tax regulations for btc?

DebitMe

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Quote from: zekarsalih on April 22, 2015, 11:29:52 AM

Im mining at a place with no such thing. I want to know what my benefit would be compared to companies in other place. Considering to offer small batches of 5ths for a certain price, you recieve btc without tax and Electricity at 0,05.

I do not understand what your trying to say above. It sounds like you will be paying dividends, which would still be taxable to the end user in the U.S., although I do not understand what your business plan is. If you want a more accurate answer you need to provide where you reside, where your customers will reside, and your business plan, otherwise, no one will be able to help you.

zekarsalih

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Im mining at a place with no such thing. I want to know what my benefit would be compared to companies in other place. Considering to offer small batches of 5ths for a certain price, you recieve btc without tax and Electricity at 0,05.

DebitMe

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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.

your question is vague because you didn't include where you live.

But to answer for the United States, as a miner, you must claim your earnings on your self employment tax calculation. Then, you also have to pay any gains on the price movement of bitcoin.

zekarsalih

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

Topic: Do miners pay TAX over their earnings?? - page 4. (Read 7039 times)