Yah sorry. Taxes being a pita and expensive weren't something I'd planned on when I started my little 4 GPU setup two months ago. It's a nasty surprise and takes some of the passive out of passive income. And also adds unplanned for expense.
My bad I guess.
Topic: Mining earnings are terrible, I'm shutting down for a while - page 6. (Read 3468 times)
Everyone got involved in mining. Even my grandmother.
So there is a lot of hardware to reach ROI, and people will not shut down their rigs if the price drops a bit. That way the diff will remain the same, and the price is going down so it's very logical that your profits will drop.
Maybe if BTC hit 4000 levels, there will be a massive GPU selloff.
So there is a lot of hardware to reach ROI, and people will not shut down their rigs if the price drops a bit. That way the diff will remain the same, and the price is going down so it's very logical that your profits will drop.
Maybe if BTC hit 4000 levels, there will be a massive GPU selloff.
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.
you get what you pay for in life man... if you only care about the easiest, simplest, fastest way to make money or even just do taxes, crpytos probably not for you.
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.
Oh hey another lame thing.
Say you pay all that income tax?
If the value of the currency you HODL decides it is going to hit the basement floor and completely tank. You could literally end up paying the IRS thousands of USD to hold a currency that is now WORTHLESS.
Say you pay all that income tax?
If the value of the currency you HODL decides it is going to hit the basement floor and completely tank. You could literally end up paying the IRS thousands of USD to hold a currency that is now WORTHLESS.
99% sure you can write those off as losses...
Yeah ... It's called a capital loss, rather than a capital gain.
Anyone making real bank doing the mining should consult a CPA. I know for a fact that they have been receiving many updates on Trump's new tax plan and how to deal with the crypto craziness. S-corp has bene's; take advantage of the 20% deduction in pass-through income, etc. Pay yourself a salary as well to limit your exposure to SS taxes, etc. Again, consult with a CPA to maximize your income. It is not as bad as people here are making it appear. Keep your receipts and itemize your expenses (power, supplies, etc.). Keep that all in mind when buying crap ("can this be considered a business expense?").
He's a high flying Digital Drug Lord, so he must be worried about paying the 35% tax bracket for ordinary income from his one 1070 and one RX 580, LOL
On Cryptocurrency Mining and Taxes: When you mine a coin you have to record the cost basis in fair market value at the time you are awarded the coin (that is profit on-paper). Then you account for further profits or losses when you sell that coin.
Unless your doing tax evasion mining is not profitable.
If my 1 $999 1070 struggles to make $2 a day when you factor in taxes it's really like $1 a day when you factor electricity it's less
So if you live in America, mine and haven't paid taxes your guilty of tax evasion and they will make an example of you.
So instead of taking jabs at a digital drug lord you should be showing people where someone could buy electronics or such with a bit or shit coin to sell it to someone else.
For example gpus are hot sale right be my 1070 cost more then my entire pc with it in it cost. Someone could by a gpu and sell it to someone to avoid paying taxes
I have come here to live a straight life so I want to pay my taxes.
im sorry friend, but you got pawned. i bought 6 1080tis on amazon just now for 765 incl 6.5% tax.
Link?
Oh hey another lame thing.
Say you pay all that income tax?
If the value of the currency you HODL decides it is going to hit the basement floor and completely tank. You could literally end up paying the IRS thousands of USD to hold a currency that is now WORTHLESS.
Say you pay all that income tax?
If the value of the currency you HODL decides it is going to hit the basement floor and completely tank. You could literally end up paying the IRS thousands of USD to hold a currency that is now WORTHLESS.
99% sure you can write those off as losses...
Oh hey another lame thing.
Say you pay all that income tax?
If the value of the currency you HODL decides it is going to hit the basement floor and completely tank. You could literally end up paying the IRS thousands of USD to hold a currency that is now WORTHLESS.
Say you pay all that income tax?
If the value of the currency you HODL decides it is going to hit the basement floor and completely tank. You could literally end up paying the IRS thousands of USD to hold a currency that is now WORTHLESS.
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.
On Cryptocurrency Mining and Taxes: When you mine a coin you have to record the cost basis in fair market value at the time you are awarded the coin (that is profit on-paper). Then you account for further profits or losses when you sell that coin.
This is not new nor anything Trump did. The IRS mandated this nearly four years ago in 2014. The only aspect the new tax laws affect crypto is they have clarified 1031 like-kind exchanges. The clarification is exactly what everyone knew they meant, but some people are going to bitch that its not what they wanted.
I had a significant number of HD6990s on preorder years back and still have 1 rig of them left. Granted it doesn't make much with the insane amount of power they eat but it's running on 2010-2011 hardware. They were a frigging terrible investment at the time but have long since paid themselves off. If you're investing, think long term. If you're hobbying (me now) does it really matter?
I've recently built a couple of batches of 3xGTX1050ti rigs using junk hardware from net cafe repossessions and I'm happy with how they're running. What I really burnt my fingers on when I started mining was getting higher end CPUs and mobos for my rigs. I try to target 25-30$ per slot for all the peripherals as that's generally what I can squeeze out of local suppliers on volume discounts on GPUs. Sure, it makes for a lot of maintenance work but I like tinkering.
It was fun back in the day when you could crash a smaller exchange over the weekend with a months worth of mining then snap up everything for cheap on Sundays. Just hodling or selling immediately are both madness imo as you've got to grow your investments/hobby steadily. It's harder now but market depth charts are still a decent noob trader indicator that it's hard to go wrong with.
I've recently built a couple of batches of 3xGTX1050ti rigs using junk hardware from net cafe repossessions and I'm happy with how they're running. What I really burnt my fingers on when I started mining was getting higher end CPUs and mobos for my rigs. I try to target 25-30$ per slot for all the peripherals as that's generally what I can squeeze out of local suppliers on volume discounts on GPUs. Sure, it makes for a lot of maintenance work but I like tinkering.
It was fun back in the day when you could crash a smaller exchange over the weekend with a months worth of mining then snap up everything for cheap on Sundays. Just hodling or selling immediately are both madness imo as you've got to grow your investments/hobby steadily. It's harder now but market depth charts are still a decent noob trader indicator that it's hard to go wrong with.
Yeah I got one of these beasts as well.
They mined BTC, LTC, X11, XMR, ETH.
Ran for years at 100C and 75% fan never failed.
Only issue was first GPU always ran 10-15C hotter than the other. Something messed up with the VRM.
I think they were $700, and back then that was considered a crazy amount to pay for a GPU. These days the mid-line GPUs are selling for that much.
During the crypto boom of 2012, I think they were sold out everywhere.
He's a high flying Digital Drug Lord, so he must be worried about paying the 35% tax bracket for ordinary income from his one 1070 and one RX 580, LOL
On Cryptocurrency Mining and Taxes: When you mine a coin you have to record the cost basis in fair market value at the time you are awarded the coin (that is profit on-paper). Then you account for further profits or losses when you sell that coin.
Unless your doing tax evasion mining is not profitable.
If my 1 $999 1070 struggles to make $2 a day when you factor in taxes it's really like $1 a day when you factor electricity it's less
So if you live in America, mine and haven't paid taxes your guilty of tax evasion and they will make an example of you.
So instead of taking jabs at a digital drug lord you should be showing people where someone could buy electronics or such with a bit or shit coin to sell it to someone else.
For example gpus are hot sale right be my 1070 cost more then my entire pc with it in it cost. Someone could by a gpu and sell it to someone to avoid paying taxes
I have come here to live a straight life so I want to pay my taxes.
im sorry friend, but you got pawned. i bought 6 1080tis on amazon just now for 765 incl 6.5% tax.
He's a high flying Digital Drug Lord, so he must be worried about paying the 35% tax bracket for ordinary income from his one 1070 and one RX 580, LOL
On Cryptocurrency Mining and Taxes: When you mine a coin you have to record the cost basis in fair market value at the time you are awarded the coin (that is profit on-paper). Then you account for further profits or losses when you sell that coin.
Unless your doing tax evasion mining is not profitable.
If my 1 $999 1070 struggles to make $2 a day when you factor in taxes it's really like $1 a day when you factor electricity it's less
Mining is treated as ordinary income, so it depends on your tax bracket what percentage you pay on the income after expenses. My RX 570's are currently making over $2.50 a day dual mining after power and fees. Over the last month it's been closer to $3. Which is also a lot more than the $1.75 - $2.00 they were making in July and August of last year.
http://whattomine.com/merged_coins/1-eth-dcr?utf8=%E2%9C%93&hr_eth=29&fee_eth=3.0&hr_dcr=730&d_dcr_enabled=true&d_dcr=73148483.17&fee_dcr=3.0&p=150&cost=0.12&commit=Calculate
I'm in the northern hemisphere, mining is free heating 😊
I've been around since 2013, and in my opinion mining profits are CRAZY HIGH at the moment.
About a year ago, you could pull in ~$1 per day with an RX 470. And now you are pulling in about triple that amount.
These types of profitability are unheard of and won't last long term.
Back in Dec 2014, an R9 280X (which was equivalent to a 1070 today) was making like $0.25/day. That's what I consider terrible earnings.
Also you guys are spoiled when it comes to power consumption. Most GPUs these days use what? A little over 100 Watts or so.
Back in the Litecoin days a R9 280X used 350 Watts. Yes 350 Watts from the wall.
About a year ago, you could pull in ~$1 per day with an RX 470. And now you are pulling in about triple that amount.
These types of profitability are unheard of and won't last long term.
Back in Dec 2014, an R9 280X (which was equivalent to a 1070 today) was making like $0.25/day. That's what I consider terrible earnings.
Also you guys are spoiled when it comes to power consumption. Most GPUs these days use what? A little over 100 Watts or so.
Back in the Litecoin days a R9 280X used 350 Watts. Yes 350 Watts from the wall.
Theese days noob bitches dont know what real miners are... pff 12 eur you realize ? 12 eur for doing nothing ! ! ! ! ! ! ! ! ! i would be more than happy back in the days 4 eur in day or a high end vga were gold ! ! ! !
He's a high flying Digital Drug Lord, so he must be worried about paying the 35% tax bracket for ordinary income from his one 1070 and one RX 580, LOL
On Cryptocurrency Mining and Taxes: When you mine a coin you have to record the cost basis in fair market value at the time you are awarded the coin (that is profit on-paper). Then you account for further profits or losses when you sell that coin.
Unless your doing tax evasion mining is not profitable.
If my 1 $999 1070 struggles to make $2 a day when you factor in taxes it's really like $1 a day when you factor electricity it's less
So if you live in America, mine and haven't paid taxes your guilty of tax evasion and they will make an example of you.
So instead of taking jabs at a digital drug lord you should be showing people where someone could buy electronics or such with a bit or shit coin to sell it to someone else.
For example gpus are hot sale right be my 1070 cost more then my entire pc with it in it cost. Someone could by a gpu and sell it to someone to avoid paying taxes
I have come here to live a straight life so I want to pay my taxes.
He's a high flying Digital Drug Lord, so he must be worried about paying the 35% tax bracket for ordinary income from his one 1070 and one RX 580, LOL
its not profitable to be a miner, at least in america, donald trumps new crypto law puts a 35% tax on your coins you mine.
so when you factor in transaction costs, electricity, the cost of the equipment, and now, the TAXES I dont know how ANYONE is paying $1400 of 1080tis
They want $999 for my 1070! I want to sell mine now while its worth something, now is not the time time mine, now is the time to dump your used and abused gear on the market and cash out....
so when you factor in transaction costs, electricity, the cost of the equipment, and now, the TAXES I dont know how ANYONE is paying $1400 of 1080tis
They want $999 for my 1070! I want to sell mine now while its worth something, now is not the time time mine, now is the time to dump your used and abused gear on the market and cash out....
please explain new 35% mining tax sir lmao
Lol ... Yeah, go ahead and explain it to us Digital Drug Lord. This guy posts retarded shit multiple times a day. He has very little understanding of anything mining or crypto related. Haven't figured out if he is just some whiny teenage pest or just another lazy bastard spouting off mis-information thinking he knows what he is talking about.
Hey Digital ... If they want to give you $999 for your 1070, why don't you take it? Sounds like you've made up your mind. Sell that 1070 at a profit and stop coming in here bitching about mining and gpu prices.
its not profitable to be a miner, at least in america, donald trumps new crypto law puts a 35% tax on your coins you mine.
so when you factor in transaction costs, electricity, the cost of the equipment, and now, the TAXES I dont know how ANYONE is paying $1400 of 1080tis
They want $999 for my 1070! I want to sell mine now while its worth something, now is not the time time mine, now is the time to dump your used and abused gear on the market and cash out....
so when you factor in transaction costs, electricity, the cost of the equipment, and now, the TAXES I dont know how ANYONE is paying $1400 of 1080tis
They want $999 for my 1070! I want to sell mine now while its worth something, now is not the time time mine, now is the time to dump your used and abused gear on the market and cash out....
please explain new 35% mining tax sir lmao
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