Should I start a business to mine | Bitcointalksearch.org

sezecastronomine

newbie

Activity: 24

Merit: 0

Quote from: Ambros on March 27, 2017, 05:49:19 AM

Quote from: Bustart on March 27, 2017, 04:23:32 AM

Quote from: Ambros on March 27, 2017, 04:05:47 AM

Quote from: crazyivan on March 26, 2017, 04:23:08 PM

Taxes on mining? Buaahhahahahahahahahhaha. Grin

+1.. The best thing about crypto is that you do not have to pay any taxes..

When you spend the coins, tax man might ask.

Yeah, they could.
What I try to do is spend most of my coins directly. I buy online in shops that accept bitcoin, buy directly from people that accept bitcoins, etc.

Do not forget that BTC (and also all the other cryptos) are currencies, use them

Lest we forget, "shift before buy except after mine".

Ambros

hero member

Activity: 653

Merit: 500

Quote from: Bustart on March 27, 2017, 04:23:32 AM

Quote from: Ambros on March 27, 2017, 04:05:47 AM

Quote from: crazyivan on March 26, 2017, 04:23:08 PM

Taxes on mining? Buaahhahahahahahahahhaha. Grin

+1.. The best thing about crypto is that you do not have to pay any taxes..

When you spend the coins, tax man might ask.

Yeah, they could.
What I try to do is spend most of my coins directly. I buy online in shops that accept bitcoin, buy directly from people that accept bitcoins, etc.

Do not forget that BTC (and also all the other cryptos) are currencies, use them

Bustart

sr. member

Activity: 658

Merit: 250

Quote from: Ambros on March 27, 2017, 04:05:47 AM

Quote from: crazyivan on March 26, 2017, 04:23:08 PM

Taxes on mining? Buaahhahahahahahahahhaha. Grin

+1.. The best thing about crypto is that you do not have to pay any taxes..

When you spend the coins, tax man might ask.

Ambros

hero member

Activity: 653

Merit: 500

Quote from: crazyivan on March 26, 2017, 04:23:08 PM

Taxes on mining? Buaahhahahahahahahahhaha. Grin

+1.. The best thing about crypto is that you do not have to pay any taxes..

philipma1957

legendary

Activity: 4116

Merit: 7849

'The right to privacy matters'

Keep records. Decide in October .

If I recall you started in 2017.

So if you keep records and see you are doing well in October you can ask an accountant what to do.

crazyivan

legendary

Activity: 1652

Merit: 1007

DMD Diamond Making Money 4+ years! Join us!

Taxes on mining? Buaahhahahahahahahahhaha. Grin

dagarair

sr. member

Activity: 847

Merit: 383

simple answer is yes if you want to be 100% legit. Nothing illegal about mining other than if you decide to not pay taxes....

If its a miner or 2 then i would nto worry abut a business just add it as "extra" income. If you are making a ton of $ a year then yes consult a tax dude.

Tmdz

hero member

Activity: 1008

Merit: 1000

If you have a small setup, like a couple of rigs then you can report it as hobby income.

A business would mean it is being run like a business and the irs may ask for you to prove it.

https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-answers/small-business-self-employed-other-business/income-expenses/income-expenses

You have to report the amount you earned by mining for the year.

When you sell you then inquire capital gain/loss from the time you acquired the coins to selling them.

Reporting as hobby income is what I do as it is a small setup. I got to deduct my expenses as there is no point in paying 100% capital gains and besides they will want to know where coins came from if they ever happen to audit coinbase database.

xxcsu

hero member

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https://bitcointalk.org/index.php?board=74.0

https://bitcointalksearch.org/topic/bitcoin-attorney-will-answer-all-questions-1724798

DebitMe

legendary

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Get Paid Crypto To Walk or Drive

Quote from: bughatti on March 26, 2017, 12:47:12 AM

So I have been doing alot of research this weekend about the taxes involved in mining. Something I dont see alot of in the forums! Many websites and many opinions. The only thing I can semi gather is that if I hold coins I am mining long term It could be 15% but if I sell as soon as I get a coin I am paying normal taxes for the bracket percent I am in. I live in the US.

To get max profits it almost makes sense to start a business just so I can write off power and equipment.

Not looking for legal advice just would like to know thoughts on this from anyone in the US.

You can report your mining income on Schedule C and still deduct power and equipment costs. You will have to report mining earnings as ordinary income then any fluctuation in bitcoin price can be capital gains/losses. One you go to sell the equipment is a whole other bag of worms that requires a lot of careful planning.

bughatti

full member

Activity: 154

Merit: 100

So I have been doing alot of research this weekend about the taxes involved in mining. Something I dont see alot of in the forums! Many websites and many opinions. The only thing I can semi gather is that if I hold coins I am mining long term It could be 15% but if I sell as soon as I get a coin I am paying normal taxes for the bracket percent I am in. I live in the US.

To get max profits it almost makes sense to start a business just so I can write off power and equipment.

Not looking for legal advice just would like to know thoughts on this from anyone in the US.

Topic: Should I start a business to mine (Read 1254 times)