Topic: Mining earnings are terrible, I'm shutting down for a while - page 5. (Read 3468 times)
Are all of you selling instantly the coins you mine? I HODL all of mine, and pay bills with my dayjob. So fluctuations in prices does not matter, becourse i dont sell when they are low. Thats just stupid. Keep on mining, the price will rise again, trust me. I dont see any cause for panic unless you HAVE to sell right now.
When I got into mining I was making maybe $2 per day per card. Then it shot up to $5 per day, and then over $10.
Now we're back to $5. Sure it's lower, but it's still a profit.
Sell your card if you're that worried, there are many people out there who will want to buy them for a passive profit.
Now we're back to $5. Sure it's lower, but it's still a profit.
Sell your card if you're that worried, there are many people out there who will want to buy them for a passive profit.
Yes it is still amazing profit. All of my rigs, which are paid off, generate $100 USD per day. They cost me $15 USD per day. Sure it was $200 a few weeks ago, but they are rare times indeed.
In theory the market could plummet back to $100bn and I would still mine and make paper profit.
I actually got into mining already planning the next boom, and that was in August 2017. The 2nd 2017 boom really caught me by surprise, but who's complaining
Hey I have two consultations with a CPA tomorrow. I'll know by end of day if this is going to be worth it for me personally.
I have a short list of questions to ask written down.
If the IRS wasn't expecting us to claim income and especially not on each and every payout individually. I'd not be concerned. What they want is a gigantic gdam pita.
I have a short list of questions to ask written down.
If the IRS wasn't expecting us to claim income and especially not on each and every payout individually. I'd not be concerned. What they want is a gigantic gdam pita.
When I got into mining I was making maybe $2 per day per card. Then it shot up to $5 per day, and then over $10.
Now we're back to $5. Sure it's lower, but it's still a profit.
Sell your card if you're that worried, there are many people out there who will want to buy them for a passive profit.
Now we're back to $5. Sure it's lower, but it's still a profit.
Sell your card if you're that worried, there are many people out there who will want to buy them for a passive profit.
Profitability is surely low but is it actually low?
We mine because we believe that in future the crypto we are mining will give us better returns. So mostly it is about holding for long enough that we gain whatever we set out to.
You really need to start thinking in terms of BTC / ETH /whatever you are holding instead of fiat if you want to mine/trade crypto tension free.
We mine because we believe that in future the crypto we are mining will give us better returns. So mostly it is about holding for long enough that we gain whatever we set out to.
You really need to start thinking in terms of BTC / ETH /whatever you are holding instead of fiat if you want to mine/trade crypto tension free.
good point
https://www.nicehash.com/miner/16yLHLoeyuCLPMXkVpC3gyrRYvwRGwjKJr
this account makes 0.0099 btc a day or 3.65 btc a year
If I mine and hold all that matters is the price of BTC 1 year from now.
But this gear is paid off fully
the power cost is zero as it is all run on solar energy
Thus I can mine and hold for an entire year. If I need to do that.
Profitability is surely low but is it actually low?
We mine because we believe that in future the crypto we are mining will give us better returns. So mostly it is about holding for long enough that we gain whatever we set out to.
You really need to start thinking in terms of BTC / ETH /whatever you are holding instead of fiat if you want to mine/trade crypto tension free.
We mine because we believe that in future the crypto we are mining will give us better returns. So mostly it is about holding for long enough that we gain whatever we set out to.
You really need to start thinking in terms of BTC / ETH /whatever you are holding instead of fiat if you want to mine/trade crypto tension free.
TO all the guys not making profit from nicehash
Please turn of all your rigs
The more rigs you turn off the less the difficulty increase
So please please turn them all off or sell them at discounted price
Crypto is dead
Better be quick before your rig is worth zero
Please turn of all your rigs
The more rigs you turn off the less the difficulty increase
So please please turn them all off or sell them at discounted price
Crypto is dead
Better be quick before your rig is worth zero
For the people with cheap electricity, it is still very profitable to mine at present.
jesus eth hash rate went up by another 40TH yesteday , so much for cards being in short supply
You realise that this is miners shifting to ETH right?
Because ETH held up better than other mining currencies over the last few days.
There were not 40TH in new hardware turned on
That's a million 1070's
jesus eth hash rate went up by another 40TH yesteday , so much for cards being in short supply
You realise that this is miners shifting to ETH right?
Because ETH held up better than other mining currencies over the last few days.
There were not 40TH in new hardware turned on
That's a million 1070's
Correct. That comes in when you go to sell.
According to the IRS in the USA, you have to report capital gains and losses even if you haven't cashed out to fiat, because they are considering crypto a property for tax purposes. It is a nightmare though. I'm still trying to sort through and understand all of this.
Hey you were asking about recommendations yesterday ... I just heard the founder of this company being interviewed on Crypto 101 ... https://cryptotaxprep.com
The interview is 90 min long, but they go very in depth on the subject.
And because of this ASININE fucking retarded policy, SOMEONE WHO ISN'T ME will not be paying taxes until they sort that shit out. Nope. Not going to happen.
Mine and hodl, if one is in such a position.
jesus eth hash rate went up by another 40TH yesteday , so much for cards being in short supply
I have turned mine off a while ago, but then again i'm using good old 7870's and 7970's so there is that. The heat and noise wasn't worth it as a poor student with a small dorm, even though i get "free" electricity. Due to the recent prices i have sold off most of them for triple their value at the time i bought them a year ago. Seems like a good deal to me. There are other ways to make (more)
TO all the guys not making profit from nicehash
Please turn of all your rigs
The more rigs you turn off the less the difficulty increase
So please please turn them all off or sell them at discounted price
Crypto is dead
Better be quick before your rig is worth zero
Please turn of all your rigs
The more rigs you turn off the less the difficulty increase
So please please turn them all off or sell them at discounted price
Crypto is dead
Better be quick before your rig is worth zero
Let me break it down. I'll make it as simple as possible below.
NOTE: The fact they want you to claim each payout in USD value for a currency that you are paid for from a pool six or more times a day, and for which the USD value will constantly vary, is a HUGE PITA.
Example:
Say you mine a currency for a year. It is worth 10,000$ USD.
23% tax bracket. You owe $2300 on that $10,000 income. You will need to pay that in cash when you file your taxes.
If you sell any currency during the year to help pay for your expenses or for any other reason. You will also have to pay a short term capital gains tax on top of the income tax paid.
If you decide you want to claim this as a business expense. Then for the first year you can write off your equipment value. After that you will still need to pay income tax, make quarterly payments to the IRS, and also pay the self employment tax. Oh, and you will still have to pay short or long term capital gains if you ever go to sell.
It is a huge RIPOFF. You will lost 35-50% of your take when you mine if you follow what the IRS is expecting.
The only alternative is tax evasion.
EDIT: You can also write off your electric bill and internet as a business expense. That may help but it is unlikely to cover the 23% (or more) they are expecting to get out of you.
NOTE: The fact they want you to claim each payout in USD value for a currency that you are paid for from a pool six or more times a day, and for which the USD value will constantly vary, is a HUGE PITA.
Example:
Say you mine a currency for a year. It is worth 10,000$ USD.
23% tax bracket. You owe $2300 on that $10,000 income. You will need to pay that in cash when you file your taxes.
If you sell any currency during the year to help pay for your expenses or for any other reason. You will also have to pay a short term capital gains tax on top of the income tax paid.
If you decide you want to claim this as a business expense. Then for the first year you can write off your equipment value. After that you will still need to pay income tax, make quarterly payments to the IRS, and also pay the self employment tax. Oh, and you will still have to pay short or long term capital gains if you ever go to sell.
It is a huge RIPOFF. You will lost 35-50% of your take when you mine if you follow what the IRS is expecting.
The only alternative is tax evasion.
EDIT: You can also write off your electric bill and internet as a business expense. That may help but it is unlikely to cover the 23% (or more) they are expecting to get out of you.
This is incorrect. You are not taxed on it until you sell it. If i own a piece of land and find out I'm sitting on top of a giant gold or oil reserve do I have to suddenly claim that as income on my taxes? If I go outside with a pick axe and mine the gold, so I have to claim it? If I am growing a giant field of corn do I have to claim income while it sits in my silo? No. Not until I sell it, or trade it, only then does it become income. Yes the IRS treats it as property, but only when you realize or lose money on it. What you are suggesting would lead to double taxation: You would being paying capital gains taxes immediately on what you mined, then once you cash out you would be paying again.
This should be pretty straightforward for those who just strictly mine. You are paying tax on everything that has been converted to dollars
That is False.
My sources direct from the IRS.
https://www.irs.gov/pub/irs-drop/n-14-21.pdf
"A-8: Yes, when a taxpayer successfully “mines” virtual currency, the fair market value
of the virtual currency as of the date of receipt is includible in gross income. See
Publication 525, Taxable and Nontaxable Income, for more information on taxable
income."
sell me your mining rigs! 
Let me break it down. I'll make it as simple as possible below.
NOTE: The fact they want you to claim each payout in USD value for a currency that you are paid for from a pool six or more times a day, and for which the USD value will constantly vary, is a HUGE PITA.
Example:
Say you mine a currency for a year. It is worth 10,000$ USD.
23% tax bracket. You owe $2300 on that $10,000 income. You will need to pay that in cash when you file your taxes.
If you sell any currency during the year to help pay for your expenses or for any other reason. You will also have to pay a short term capital gains tax on top of the income tax paid.
If you decide you want to claim this as a business expense. Then for the first year you can write off your equipment value. After that you will still need to pay income tax, make quarterly payments to the IRS, and also pay the self employment tax. Oh, and you will still have to pay short or long term capital gains if you ever go to sell.
It is a huge RIPOFF. You will lost 35-50% of your take when you mine if you follow what the IRS is expecting.
The only alternative is tax evasion.
EDIT: You can also write off your electric bill and internet as a business expense. That may help but it is unlikely to cover the 23% (or more) they are expecting to get out of you.
NOTE: The fact they want you to claim each payout in USD value for a currency that you are paid for from a pool six or more times a day, and for which the USD value will constantly vary, is a HUGE PITA.
Example:
Say you mine a currency for a year. It is worth 10,000$ USD.
23% tax bracket. You owe $2300 on that $10,000 income. You will need to pay that in cash when you file your taxes.
If you sell any currency during the year to help pay for your expenses or for any other reason. You will also have to pay a short term capital gains tax on top of the income tax paid.
If you decide you want to claim this as a business expense. Then for the first year you can write off your equipment value. After that you will still need to pay income tax, make quarterly payments to the IRS, and also pay the self employment tax. Oh, and you will still have to pay short or long term capital gains if you ever go to sell.
It is a huge RIPOFF. You will lost 35-50% of your take when you mine if you follow what the IRS is expecting.
The only alternative is tax evasion.
EDIT: You can also write off your electric bill and internet as a business expense. That may help but it is unlikely to cover the 23% (or more) they are expecting to get out of you.
This is incorrect. You are not taxed on it until you sell it. If i own a piece of land and find out I'm sitting on top of a giant gold or oil reserve do I have to suddenly claim that as income on my taxes? If I go outside with a pick axe and mine the gold, so I have to claim it? If I am growing a giant field of corn do I have to claim income while it sits in my silo? No. Not until I sell it, or trade it, only then does it become income. Yes the IRS treats it as property, but only when you realize or lose money on it. What you are suggesting would lead to double taxation: You would being paying capital gains taxes immediately on what you mined, then once you cash out you would be paying again.
This should be pretty straightforward for those who just strictly mine. You are paying tax on everything that has been converted to dollars
Correct. That comes in when you go to sell.
According to the IRS in the USA, you have to report capital gains and losses even if you haven't cashed out to fiat, because they are considering crypto a property for tax purposes. It is a nightmare though. I'm still trying to sort through and understand all of this.
Hey you were asking about recommendations yesterday ... I just heard the founder of this company being interviewed on Crypto 101 ... https://cryptotaxprep.com
The interview is 90 min long, but they go very in depth on the subject.
Correct. That comes in when you go to sell.
True if you are claiming it as a business expense and going that route.
If you want to minimize your costs then forget having a simple tax return. You may end up having to pay a CPA and have your taxes prepared. So much for simplicity.
Whether it's worth all that hassle for ten grand or less in income? Meh...
You can't keep writing off the full value of the same equipment every year either.
If you want to minimize your costs then forget having a simple tax return. You may end up having to pay a CPA and have your taxes prepared. So much for simplicity.
Whether it's worth all that hassle for ten grand or less in income? Meh...
You can't keep writing off the full value of the same equipment every year either.
Capital gains and losses can be used on personal tax returns for investments. That's completely different than writing off equipment cost, electricity cost, ect. We're talking about two different things.
Capital gains and losses are reported on short and long term investments (both have different tax rates) based on current value minus original value when it was acquired.
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