I don't know the exact tax forms that it's going to need to be on, but you are allowed to expense anything that the rigs cost you, expenses along with using them, and so on and so forth and subtract this from the profits of the rigs themselves-- this is going to help you for tax purposes substantially.
I found this too, hope its helpful.
Topic: Gains from sell of mined cryptocurrency: 4797 or 8949? (Read 113 times)
I'm self employed and just wondering how I should report any gains from mining cryptocurrency.
I need an accounting method for treating the property received. Do I put it in as inventory and use Schedule C? Do I treat it as business property and report gains in 4797? Or does it immediately become personal property and I report gains with schedule D / 8949? I'm in Oklahoma.
I just started this self employment thing a couple weeks back. The only thing I am doing is mining crypto and then selling it immediately or trading it for another crypto for short to long term investement.
I haven't chosen an accounting method for the property so it's flexible now.. again just started.
I need an accounting method for treating the property received. Do I put it in as inventory and use Schedule C? Do I treat it as business property and report gains in 4797? Or does it immediately become personal property and I report gains with schedule D / 8949? I'm in Oklahoma.
I just started this self employment thing a couple weeks back. The only thing I am doing is mining crypto and then selling it immediately or trading it for another crypto for short to long term investement.
I haven't chosen an accounting method for the property so it's flexible now.. again just started.
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