Also don't forget to do the proper accounting work on your earnings daily and equipment deduction for taxes. This takes time and consideration. It's not a set and forget and lambo.
Did you actually pay tax from mining profits yourself?
Do miners really pay? With big traders esp. those registered on coinbase i can understand. But for every regular miner Joe why the hell would you need to report taxes when mining is so speculative? You could be paying tax now for a mined bitcoin worth $8000 then suddenly bitcoin goes to shit and you paid a boatload of tax for nothing at all. Pay tax when you cash out not while you mine. Sheesh.
Yes I did pay my mining taxes in the United states
Yes a lot of people did mine at the all time high and owe taxes on it regardless if they cash out of not. You can sell it now and report as a loss for 2018 tax year but You still owe money on whatever You mined in 2017
You pay taxes even on penny stocks that are speculative. Crypto is no exception.I
Yes the irs mining rules suck but it is what it is. Best to play by the rules and have clean accounting.I
But my point is that if you want to get into mining do consider your tax obligations as this is a heaviest burden
I'm all for following the law and all that but at some point you can't be a sheep and follow everything blindly.
Do you really think the IRS can find out whether or not you were crypto mining? A simple use of an overseas/decentralized exchange can easily hide your mining income. Why go through all the trouble of declaring mining profits and losses when you know it is so volatile.
You're like all those characters in books/movies that follow the law to the letter and ends up dying or doing something silly because they can't get their head out of their ass. No offense.
I'm not a goodie too shoe. I'm just a regular Joe that wants to maximise my tax savings. Gpu equipment deduction is huge so it's worth reporting on that but you also got a report how much it made. Goes both ways.
Overseas exchange also have all your trade records, IRS can pressure exchanges to hand it over like they did with coinbase years later. Or they may be faced to shut down service to USA customer like what happened with bitfinex.
If your a good trader and decide to cash out you magically have more bitcoin than what you bought and your cost basis goes negative. That can mess up your accounting going forward and the IRS may question this.
