Topic: if you are supposed to pay tax on mining profit how about expenses? (Read 616 times)

The real question is where can you buy things with shitcoin and cash out that way. For example you could buy an Xbox and sell it. What the IRS doesn't know won't hurt them

If you treat your mining operation as a business, the expenses can be treated just like for any other business.

I DO strongly recommend you keep ALL RECEIPTS and keep a full set of books on it though - the IRS will want to see all of that if they audit you.

sole prop has 1040 schedule c which has utilities section in box 25 and supplies section in box 22:

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

I am going to cram all the huge expenses of GPU into box 22 and sky hi electricity into box 25.
Hopefully there are some refunds. But these were actual expenses and severe expenses.
Haha.

Your IRS sounds like a god damn mafia. I even live in a socialist country, and to compare our tax collectors is to compare water to stone. If you get into a fight with the IRS you would be happy to come out alive and not bankrupt 

sounds like a good plan.

Sounds like if you play by the rules and deduct as much as you can. Cash out slowly after a year out and keep buying more haedware, the IRS has to pay you to play with your hobby. Not a bad deal if you do your due diligence.

Someone who isn't me was never going to claim losses if they lost money in crypto so they won't be paying taxes.


Me personally I sold all my equipment 3 years ago and don't own any crypto. I'm investing in Rupees.

yes you can but i would talk to some one who know wtf there doing an not here you will get good advice here but to be safe talk to someone who does it for a living that knows all the ends and outs of the IRS with mining there out there and usually cost about the same as any law or tax person .

I would talk to a tax firm/person some give advice free, to be safe .

how about electricity cost?  
Yes you can

but it has a to be as a business cost,
Mining is a business by IRS rules in the US until they change it, which I wouldn't count on right now or until next year maybe when hopefully the ass hole in the WH won't have full control and will be forced to do shit or else

if you claim mining as a hobby you can't claim anything else an then it's claimed as a lose < ( short version) there is more to it,I made it simple, so be careful .that's how it was explained to me by a expert.

an that new tax law is one big scam unless your rich, an those who back it up are either rich an it benefits them or have no clue.

so well see in Nov.

also the cost of doing business as far as mining is concerned aint cheap in the US no it can be very cheap if you own the house or building it's set up in then it's all most no cost, if you mean that, and there are no laws any miner has to follow yet at least in my state there is none. they are talking about it but only the Republican's are,that's so they can steal more ...


if you have Solar which I do the cost won't be so bad for electricity or i am about to find out by April, mine goes live then .

It is much bigger topic than that, but in general, taxation is unavoidable should be for all sources income but the current rate and how it is being used?? nahhhh...

Honest question, out of curiosity, do you feel that way about all types of income taxation?

clock on the link
even the pic shows what i think about pay taxes for crypto taxes for crypto thats a fucking joke

as a side note:
Apple inc and the likes pay about lower end single digit tax with tax haven countries. Words are that they might be paying about 1-5% income tax, compare it to you whopping 20-40% income tax!
once your company's income surpasses 300,000$ it starts to decrease from 39% to all the way to 25% range. It pays to be rich and poor but not a middle class!!

gif is not playing, can only see still pics. 

Electricity costs are a full deduction, so make sure to keep track of how much power you are using and record it. We record power usage daily using killawatt meters on each rig and a spreadsheet. That way if we're ever audited we have proof to show them. It's also helpful for seeing  exactly how much power you're using when mining different algorithms etc...

paying tax for my crypto

https://media1.tenor.com/images/749378b1690286ae43aa1ad4ce174386/tenor.gif

how about electricity cost? it is also cost of doing business as far as mining concerned right? And in the US it aint no cheap!

Thanks for all the info great community bitcointalk is!

I'm just gonna say two words and leave a little link.

Voluntary Compliance

This will only go to reinforce how corrupt our government is; and how twisted some people can make the actual definition of two words be 100% the opposite of its english definition.

*edit*  mind you there is no federal law or statute that requires you to pay a tax, or imposes a penalty for not paying said tax.   It's the tax code;  that does impose these things;  which the tax code itself is 100% not a federal law or statute.  It's a code of rules 100% in its own realm written by a private corporation.

How to handle cryptocurrency on your taxes

The IRS guidance on cryptocurrencies

yeah people get fucked by a 450 head dictator  named congress.

no term limits  they just out wait the current president and go on their merry way.