Topic: KanoPool kano.is lowest 0.9% fee 🐈 since 2014 - Worldwide - 2432 blocks - page 607. (Read 5352445 times)

Welcome aboard!

Welcome aboard, all it takes is one.   

Welcome!

M

Well guys I have pointed my little aliens at the pool and hope to learn more and will learn to DANCE!!!

10x Antminer S9s (140TH)


Cheers Paul

Let's just take a 145% block and then an under 15% block to even it out a bit.     MINE THE F ON!

... and there's a little table I post every so often about that
Coz, it's like rolling a dice, you of course expect to get a 6, on average, every 6 rolls, but of course you don't get exactly that.
Sometimes you might get two 6's, or no 6's, or three 6's - that's 'chaos' coming into it and giving you 'random' results - as long as the dice isn't weighted

So the table, in this case, is a table of CDF probabilities as follows:
... and what this table says, e.g. for the 5th line, you expect, on average, over time, that 1 in 20.1 blocks we find will be over 300%

i.e. the most important part to understand in that, is that it's ok to get long blocks every so often, and that table even says, on average, how often to expect them, as long as the long term average is still close to 100%

Short term, the averages go up and down dramatically, but long term it should get closer and closer to 100% average.

... see the Pool->Blocks web page

Makes sense...as long as you're consistent that's good enough for the IRS.

https://www.youtube.com/watch?v=H0aB5HN77Wk

I'm from Brooklyn and somewhat remember this, what frequency was the station on?

hey, i slipped off the first page! that is not acceptable! i will just have to add another 100THs.... -come and get me!!

let's gooooo!!

I recognize it once Kano sends the payment - I believe that's always the 101st confirmation.

But Fuzzy, what is your basis then?  You have to have some costs of goods sold (mined), otherwise it's just straight 100% income.  The IRS won't care if whatever cost basis you can come up with is consistent, even if it's to your advantage.  They won't be able to spend the time to come up with something that rules better in their favor...just simply not worth it.


That being said, let's find another block!

What he said.   You recognize the payout on the 101st block or when the reward/payment is generated on the website?  Either can work, just as long as you're consistent. 

I run my mine as an LLC.

My CPA advised me to recognize each payout from mining as revenue at the time the TX in confirmed. So I record the date/time and then the price based on the CME reference rate for that day.

Of course, you can deduct power, hardware, internet, facilities costs, etc from this.

I think in general its best to talk to your CPA, or whomever will need to defend you in court if you get audited, to make sure their position is clear.

In general, the numbers of shares should be roughly the difficulty. So at today's difficulty, you'd be expected to find a block after 1,931,136,454,487 shares. However, it isn't a perfect calculation, since there is variance and luck. So when you see 140% diff, it means we've shared 40% over the amount that should give a block, statistically.

No deducts with personal mining?   Those miners and electrons are just like a free apple tree on the side of the road to be picked?

or am I missing what you meant?

That IRS drop is what I was referring to with the viewing BTC tax as barter.
Much of this has been hashed and re-hashed in Taxes on Bitcoins thread (now locked).
Point is, as firetreeactual and I pointed out, that guidance is useless because there is no reference to which used exchange given in it. Look at the exchanges and you will see several hundred $ spread in pricing so which to report with? The lowest one? The highest one? Let's face it, the IRS still needs to nail this down.

The only thing that makes fully repeatable sense - and the only verifiable way - is basing taxes owed when you actually do the exchange into fiat. Only then is there no question as to the 'real' value. Then there is the matter of *just how* the IRS would have any knowledge of your (mined) BTC holdings? When you exchange into fiat, that goes straight into my bank and both Coinbase and my bank record it/report it to the IRS. That is all they see so that is all I report.

As for P&L, that mainly enters in only if you are trading or running as a business. Trading is straightforward cost-to-buy vs sell price. As a business, the taxable value of BTC is being offset by Section 179 deducts and normal business operating expenses, eg power/rent, etc. With personal mining there are no deducts so is pure additional income and taxed as such.

yes, yes. fine. Good.

Lets get another block, first, though.

140.75% of Diff, come on BLOCK!! Mine On!!

I sent it over to my CPA and told them they need to figure it out.