Mining taxes - page 2. | Bitcointalksearch.org

notlist3d

legendary

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Quote from: Amph on October 23, 2015, 01:33:00 AM

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

Depends on what they consider the income or investment. To be honest I would be interested to hear a CPA on it. At one time I thought I wanted to be one of those...... but went a different path. So I'm not going to throw out wrong info.

A business would definitely have some. I think a lot will come down to if it's seen as a hobby or enough to be over a hobby. A CPA could do a lot better though at classifying it and be able to tell exact numbers.

Amph

legendary

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

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

Questor

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So, technically a business would pay taxes on their equipment in two ways:
1) At the time of acquisition most states will require that their one time "use tax" is paid at a percentage based on the value of the miners if sales tax was not remitted. This is often the same as the sales tax rate.
2) The value of the equipment would be taxed at the states "personal property tax" rate on an annual basis, based on declared value, accumulated depreciation, etc...

At current, any holdings in BTC would probably not be taxed unless they are declared on the asset sheet when doing accrual accounting, but as soon as that BTC is converted to USD on an exchange and USD is deposited into an account it would become taxable income to the state and the fed.

Tax implications around BTC will clearly abound in the near future.

notlist3d

legendary

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Quote from: Rude Boy on October 22, 2015, 10:19:41 PM

What if someone doing cloud mining? And from bit-x i got ~0.5+ GHs and i'm getting 400+ sat per day and paying 300+ sat for maintanence fee finally i'll get ~100 sat. So i'm the victim of paying tax? Shocked

We really need a CPA. But I think you need to be pulling quite the profit, most hobby miners don't make the profit's of a company. But there are some quite large and chances are should look into it.

One thing I think should make a difference if you cash out the BTC and are making big profits. If you cash it out you truly could get a profit. But if you don't cash it in and it's held as BTC I think it really would be hard to pick a value. But I'm also not a CPA..

Rude Boy

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What if someone doing cloud mining? And from bit-x i got ~0.5+ GHs and i'm getting 400+ sat per day and paying 300+ sat for maintanence fee finally i'll get ~100 sat. So i'm the victim of paying tax? Shocked

notlist3d

legendary

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Quote from: ?? on ??

Well home miners have no worries but giant warehouse owners I think have to pay tax as income taxes but can also write off business expenses and losses which in such a tight area for ROI could come in handy.

I think I would agree normally it would be a "hobby" for most home miners. But if you reach a certain number I'm sure it goes into a taxable item (as far as US).

Best anwser is if you are doing a ton and feel you hit this taxable area. Get a true CPA, not one of those things that pop up around tax time to help with easy returns. But a true CPA could give you a anwser on what it is in your area. But they will charge you for their time.

Raimonn

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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.

Zeroxal

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Quote from: winspiral on October 22, 2015, 09:31:36 AM

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

The government will trace you down and put you into a high security jail in Norway if you don't pay 200 satoshi per day to the government.
After that all your satoshi will be seized and there will be a big court discussion about what to do with the huge amount of the seized currency.

winspiral

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Free WSPU2 Token or real dollars

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

Betwrong

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I stand with Ukraine.

Quote from: Zeroxal on October 22, 2015, 08:38:34 AM

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?

It depends on where you live I think. In Europe as far as I know no miners pay taxes from mining, but they should pay VAT (which is pretty big in some cases, 20-25%) when buying things from abroad (including miners and all the equipment ).

Zeroxal

hero member

Activity: 896

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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?

Topic: Mining taxes - page 2. (Read 2970 times)