Besides the fact you're commiting a crime. A transaction of 10,000 is reported by banks. So not six figures.
Ok so you can split that up and try to hide it that way. If you ever get audited you could go to jail. It's a risk you take.
This is so disappointing to read about today. Took the wind outta my sails completely.
Topic: IRS ruining mining (Read 131 times)
Yea, the IRS is terrible. The fact that our tax law can't be printed and carried reasonably by one person should be a sign that something is wrong. That said... how the heck is the IRS going to know you got paid in crypto? Unless you cashing out six-figures into fiat through Coinbase then I'd just carry on.
After reading more about the new US tax rules for crypto currency mining I'm really upset.
1) IRS wants you to keep track of every single payout in USD value. Claim that as income. Many pools have auto payout and do this 12x each day. Keeping track of that is a nightmare!
2) After you have already paid a hefty income tax on the currency you mine. You now have to pay another large tax on capital gains if you sell.
It is not difficult to predict up to 50% of what you mine going to pay taxes. The only way around this is to lie and commit tax evasion. If you're OK with that then you'll be in huge trouble if you ever get audited.
If you don't want to commit a crime then I don't see how this is worth it. I'm seriously considering shutting my stuff down and selling while the GPU prices are through the roof.
IRS is ruining everything for us here in the US. It is even worse for traders who have to keep track of every single trade they make. Ridiculous!!
1) IRS wants you to keep track of every single payout in USD value. Claim that as income. Many pools have auto payout and do this 12x each day. Keeping track of that is a nightmare!
2) After you have already paid a hefty income tax on the currency you mine. You now have to pay another large tax on capital gains if you sell.
It is not difficult to predict up to 50% of what you mine going to pay taxes. The only way around this is to lie and commit tax evasion. If you're OK with that then you'll be in huge trouble if you ever get audited.
If you don't want to commit a crime then I don't see how this is worth it. I'm seriously considering shutting my stuff down and selling while the GPU prices are through the roof.
IRS is ruining everything for us here in the US. It is even worse for traders who have to keep track of every single trade they make. Ridiculous!!
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