Topic: I can reduce my electricity by 30% with commercial connection (Read 1631 times)
Or you could make a non-profit company and do bit coins as your hobby lol
if your in the UK check out the advice from my accountant.
Post 17#
He let me cut and paste it
which was nice.
I will be trying to get myself a better deal also.
EDIT: Doh forgot the linky ---> http://forum.bitcoin.org/index.php?topic=25633.msg322358#msg322358
Post 17#
He let me cut and paste it
which was nice.I will be trying to get myself a better deal also.
EDIT: Doh forgot the linky ---> http://forum.bitcoin.org/index.php?topic=25633.msg322358#msg322358
Brilliant information to have. What have you decided to do with your mining setup then?
I didn't catch that he was in the USA. Do business/company taxes apply globally and/or does the IRS have global jurisdiction?
if your in the UK check out the advice from my accountant.
Post 17#
He let me cut and paste it which was nice.
I will be trying to get myself a better deal also.
EDIT: Doh forgot the linky ---> http://forum.bitcoin.org/index.php?topic=25633.msg322358#msg322358
Post 17#
He let me cut and paste it
which was nice.I will be trying to get myself a better deal also.
EDIT: Doh forgot the linky ---> http://forum.bitcoin.org/index.php?topic=25633.msg322358#msg322358
You don't need to worry about taxes (USA) until you make more than $6k in revenue. After that, you're required to claim the income. I'd recommend getting an EIN from the IRS and claiming the percentage of your total power consumption that goes into coin production as a cost-based deduction. Additionally, you can claim depreciation on your rigs using a 3-year schedule.
If you aren't paying taxes now, you are most likely breaking the law. So it might be worth the peace of mind to even things out but be on the right side of the IRS fence.
I've considered going to industrial power, as I live in one of the most electrically costly areas of the country, and also the wiring is awful in my apartment (30A for all accessible sockets), but in the end I'm too lazy to expand beyond where I am. If you can do it easily, quickly and without much cost, I would see it as worthwhile, if not, I would expect it to not be a great move.
I've considered going to industrial power, as I live in one of the most electrically costly areas of the country, and also the wiring is awful in my apartment (30A for all accessible sockets), but in the end I'm too lazy to expand beyond where I am. If you can do it easily, quickly and without much cost, I would see it as worthwhile, if not, I would expect it to not be a great move.
I will have to setup a company first though. I have 8Gh/s and I suppose I would have to pay taxes with this setup so it would probably still end up costing the same if I stayed on domestic.
Thoughts?
Thoughts?
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