Topic: Mining taxes (Read 2978 times)

I read that switzerland will keep it tax free. Not sure how north america (US and Canada) are looking against it. Probably they will tax it.. ;(

How would they know the amount of bitcoins the big mines generate. This shit is not public information and any government or IRS representative would have no clue if they were being lied to since most of the auditors have literally no education in bitcoins. Is this a perk of new technology or just peoples ignorance? I bet it's just a matter of time before a big mining company gets busted lying to the feds.

I heard that the government is starting to take taxes from big miners.
At a company, if you invest/buy equipment you would buy it tax-free, however you will have to pay for the taxes of your income.
Do the big miners get their mining equipment tax-free? Because they still need to pay income taxes afterwards.
Or do they pay taxes for both?

I am not sure where you are living at, but if it is in the USA, I would recommend paying taxes on your income for this anyhow.  It is only a matter of time before the USA starts catching up on the technology and when they do, they will come after all of us who earned money from BTC or any Cryptocurrency mining and did not claim taxes on it.  Unless you are a large mining company, your taxes will be very minimal, so might as well pay them and avoid any future issues.

Can you explain more?  This seems far to good.   Writing off  the power bill on taxes but don't report earnings?  

I would hate to get a audit like that.....

I heard that the government is starting to take taxes from big miners.
At a company, if you invest/buy equipment you would buy it tax-free, however you will have to pay for the taxes of your income.
Do the big miners get their mining equipment tax-free? Because they still need to pay income taxes afterwards.
Or do they pay taxes for both?

i mine ...600 to 1000 satoshi per day...will i be taxed? (lol)

Can you explain more?  This seems far to good.   Writing off  the power bill on taxes but don't report earnings?  

I would hate to get a audit like that.....

right
we're already pay a lot of taxes. import taxes, sales taxes, vat, taxes of the electricity, taxes of the internet connection, etc.
add tax? no ROI.

Do you already pay a lot of taxes, when you buy the miner you pay import taxes, Vat taxes, when you are mining you pay taxes of the electricity. I don't think that more taxes are needed. And I think its difficult to see how many bitcoins have you mined. 

it all depends on how ur farm is setup , im mining a good bit a day , but dont pay any taxes on it , i even get to write off the power bill for taxes

I don't claim anything.
Not worth it... unless you're mining half a Bitcoin a day, don't worry about it.
They're not worried about lil pissants... if you do mine more than that in a day, you're looking at more issues than just taxes.
If you do, you likely have a business and a chartered accountant.

If you run mining as a big business, you have to declare and many expenses are tax deductible. For most GPU miners, they are making a loss.

Q-8: Does a taxpayer who “mines” virtual currency (for example, uses computer resources to validate Bitcoin transactions and maintain the public Bitcoin transaction ledger) realize gross income upon receipt of the virtual currency resulting from those activities?

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.

Q-9: Is an individual who “mines” virtual currency as a trade or business subject to self-employment tax on the income derived from those activities?

A-9: If a taxpayer’s “mining” of virtual currency constitutes a trade or business, and the “mining” activity is not undertaken by the taxpayer as an employee, the net earnings from self-employment (generally, gross income derived from carrying on a trade or business less allowable deductions) resulting from those activities constitute self-employment income and are subject to the self-employment tax. See Chapter 10 of Publication 334, Tax Guide for Small Business, for more information on self-employment tax and Publication 535, Business Expenses, for more information on determining whether expenses are from a business activity carried on to make a profit.

If you run mining as a big business, you have to declare and many expenses are tax deductible. For most GPU miners, they are making a loss.

about what number we are talking about? here for example you don't pay taxes for an income that is below 4800 per years

and anyway i'm sure that if you run a big business the simple thing of buying many miners mean that you invested a lot of money and you need to declare those money