Topic: Swedish ASIC miner company kncminer.com - page 574. (Read 3050075 times)
So, one has to keep track of bitcoin value at every instant pool finds a block?
I stand corrected
However that A-8 answer is a little fuzzy.
Includible?
However that A-8 answer is a little fuzzy.
Includible?
Sounds like it must be included, just like wages, as gross income. My question now is.. How would one treat the purchase price of the mining equipment?
FUD? I can order 3 1TH Coincraft miners with a delivery date of March 29th for $11,000 right now, and Knc hasn't shipped a single Neptune or even given buyers any idea of when they will be delivered. I'm amazed that everyone who doesn't have a day one order hasn't cancelled yet, and even day one orders are looking worse and worse by the day.
https://bitcointalksearch.org/topic/wwweasy2minecom-340-the-group-buy-of-antminer-s5psu-included-514758
https://bitcointalksearch.org/topic/wwweasy2minecom-340-the-group-buy-of-antminer-s5psu-included-514758
He's in denial. The Neptune is quickly becoming (if it wasn't already) a terrible purchase.
Agreed, and I don't even think the power usage numbers on the Neptune will be that great, so that won't even save buyers.
November Jupiters used 1.3W/GH, so a Neptune will probably use ~1W/GH, which has already been matched by many competitors.
In my opinion, it's a huge mistake to be overly loyal to any mining hardware manufacturer in this game. That bias will likely cost you a lot of money.
How many have they delivered so far?
Not my cup of tea
Remember just a few months ago when peeps said the same about Jupiter, and refunded for Hashfast and Cointerra?
Deja-Vu
...and now they are salty.
Same will happen here. Stoked. It's like an instant replay.
Remember when "Jupiters will never make ROI" was the theme?
hahahahaa
Most jupiters have yet to ROI in BTC terms. Dickhead.
You are saying you've had 5 months to mine with your Jupiter(s), and haven't made ROI in btc?
Nearly impossible unless you had major problems, or simply didn't mine with them. Wow.
Maybe you should try another investment, seriously.
Most had ROI within a couple months dude... look back in this thread.
Got mine on october the 4th, late afternoon. Got it working 45 min later. Probably due to some raw edges of fw 0.90 one of my asic slot had a die0 issue. The other slots had "not best in class" performance, hence my miner mint at 470 gh/s @pool until I decided to apply enablecore patch to the miner (a week or so after knc release it). After that I was able to get almost up to par performance. Later on after having applied a few tricks/mods learnt mainly from the overclock thread the miner is mining at 640 @the pool.
To make a long story short I spent 65 btc to buy the miner. I still don't have all my btcs back. I'm almost there, though.
Just to say that not all jups were created equal.
http://eligius.st/~wizkid057/newstats/userstats.php/1EwrkHgMeamha7EDMXcBFFjmS8XcWeKDuM
my Jupiter since October the 4th!! payed in $!!
There is some terrible tax advice in this thread.
Read this:
http://www.irs.gov/pub/irs-drop/n-14-21.pdf
Specifically, this:
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.
Read this:
http://www.irs.gov/pub/irs-drop/n-14-21.pdf
Specifically, this:
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.
I stand corrected
However that A-8 answer is a little fuzzy.
Includible?
There is some terrible tax advice in this thread.
Read this:
http://www.irs.gov/pub/irs-drop/n-14-21.pdf
Specifically, this:
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.
Read this:
http://www.irs.gov/pub/irs-drop/n-14-21.pdf
Specifically, this:
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.
It is my understanding that assets (in this case bitcoin) are not taxable until CONVERTED to dollars by sale or other means. Also, you can claim self employment and depreciate the machines used to mine. Not full cost, but over time based on their useful lifetime. If you go that route, you WILL need a CPA to check your figures and sign off on them, for the inevitable audit.
Here is my opinion. If you are a sole prop LLC (which you should be)
Your hardware to produce Bitcoins/other coins is an asset like a printer, a server or a laptop. You use it to work and make money.
You purchase it and write it off over a reasonable depreciation period (usually 3 to 5 years)
Bitcoins that are not converted to cash have no value and are the same value to your LLC as a domain name (something you could sell and convert to cash) but if you haven't you have no realized value.
If you were wise enough to register the domain name "creditcards.com" that obviously is worth hundreds of thousands of dollars, but until you sell it for cash it is worth the $8 your paid GoDaddy to register it.
Same for a string of characters that is a Bitcoin, until someone buys it from you, it isn't worth squat.
So if you paid $20k for miners and never sold a bitcoin in 2013 you have $20k in depreciable computer assets and nothing more.
Your mileage may vary, batteries not included, items in the mirror are closer than they appear, CONSULT YOUR ACCOUNTANT.
Don't mention the word Bitcoin in your tax return.
If you feel compelled then they are:
Application Specific Computer Systems.
Good luck
Not refund yet?
Yes. Month passed since my orders changed status to "Refund ready for process". No refund since February.Their support only replies "we are extremely busy at the moment".
It is taking them more than a MONTH to send a single bitcoin transaction, LOL.
SCAM
REFUND RECEIVED TODAY !
Whew!
I would encourage anyone that thinks they do not need to pay income tax on their mining profits to read this article.
http://www.zerohedge.com/news/2014-03-25/irs-rules-bitcoin-property-not-currency
Not refund yet?
Yes. Month passed since my orders changed status to "Refund ready for process". No refund since February.Their support only replies "we are extremely busy at the moment".
It is taking them more than a MONTH to send a single bitcoin transaction, LOL.
SCAM
REFUND RECEIVED TODAY !
Whew!
Even I, as a newbie, know Phoenix is a scamming KnC fanboy 
(Yes, i´ve read the scam thread)
Oyeah, I'm just here scamming everyone..... please...(Yes, i´ve read the scam thread)
I'm here getting rich as hell just commenting away.
Haahahahaaa
KNC Fanboy? okay, I'll cop to that
Not refund yet?
Yes. Month passed since my orders changed status to "Refund ready for process". No refund since February.Their support only replies "we are extremely busy at the moment".
It is taking them more than a MONTH to send a single bitcoin transaction, LOL.
SCAM
REFUND RECEIVED TODAY !
Even I, as a newbie, know Phoenix is a scamming KnC fanboy
(Yes, i´ve read the scam thread)
(Yes, i´ve read the scam thread)
FUD? I can order 3 1TH Coincraft miners with a delivery date of March 29th for $11,000 right now, and Knc hasn't shipped a single Neptune or even given buyers any idea of when they will be delivered. I'm amazed that everyone who doesn't have a day one order hasn't cancelled yet, and even day one orders are looking worse and worse by the day.
https://bitcointalksearch.org/topic/wwweasy2minecom-340-the-group-buy-of-antminer-s5psu-included-514758
https://bitcointalksearch.org/topic/wwweasy2minecom-340-the-group-buy-of-antminer-s5psu-included-514758
He's in denial. The Neptune is quickly becoming (if it wasn't already) a terrible purchase.
Agreed, and I don't even think the power usage numbers on the Neptune will be that great, so that won't even save buyers.
November Jupiters used 1.3W/GH, so a Neptune will probably use ~1W/GH, which has already been matched by many competitors.
In my opinion, it's a huge mistake to be overly loyal to any mining hardware manufacturer in this game. That bias will likely cost you a lot of money.
How many have they delivered so far?
Not my cup of tea
Remember just a few months ago when peeps said the same about Jupiter, and refunded for Hashfast and Cointerra?
Deja-Vu
...and now they are salty.
Same will happen here. Stoked. It's like an instant replay.
Remember when "Jupiters will never make ROI" was the theme?
hahahahaa
Most jupiters have yet to ROI in BTC terms. Dickhead.
You are saying you've had 5 months to mine with your Jupiter(s), and haven't made ROI in btc?
Nearly impossible unless you had major problems, or simply didn't mine with them. Wow.
Maybe you should try another investment, seriously.
Most had ROI within a couple months dude... look back in this thread.
Got mine on october the 4th, late afternoon. Got it working 45 min later. Probably due to some raw edges of fw 0.90 one of my asic slot had a die0 issue. The other slots had "not best in class" performance, hence my miner mint at 470 gh/s @pool until I decided to apply enablecore patch to the miner (a week or so after knc release it). After that I was able to get almost up to par performance. Later on after having applied a few tricks/mods learnt mainly from the overclock thread the miner is mining at 640 @the pool.
To make a long story short I spent 65 btc to buy the miner. I still don't have all my btcs back. I'm almost there, though.
Just to say that not all jups were created equal.
Last statement from FINCEN about BTC taxes was that trading would be taxed, and mining was not threatened yet.
It was on coindesk. But Time will tell.... btw... Taxes are NOT retro-active in USA brah, they never are. You cannot be taxed on your 2013 btc earnings unless you willingly give it away to them. There is no guideline in place yet, and when it is, it will be from then on, not reaching into the past, they cannot do that unless there was a guideline in place..
as they cannot just decide to tax you after the fact. Guideline comes first, then tax from then on.
This is off topic but this is completely wrong. FINCEN is about whether you need to register as an MSB. The IRS has nothing to do with this paper. You owe taxes on anything that you made income from (whether it is mining bitcoins or selling organic beets). Just because the beet farmer does not need to register as an MSB does not mean he does not need to pay taxes. You have misunderstood.
It is my understanding that assets (in this case bitcoin) are not taxable until CONVERTED to dollars by sale or other means. Also, you can claim self employment and depreciate the machines used to mine. Not full cost, but over time based on their useful lifetime. If you go that route, you WILL need a CPA to check your figures and sign off on them, for the inevitable audit.
Can you explain how that statement equates into larger diffchanges over the next couple months?
It goes to show how fast Bitmain can ramp up production. KnC was never able to pump out the vast quantity of units that Bitmain does.
hmmm, i think u have overlooked the comming new Boss in town:
spongebob-tech:
http://www.spondoolies-tech.com/
Just like you ignored the company in the UK that you and your 'brother' sent your bitcoins to and were 'scammed' (i.e, shilled for so others would fall for the scam)
Go get some coffee dude... relax.
and btw... you are posting to comments from a few days back
they have been vetted now.
Just catching up on what i have missed - unlike you, i have a life outside of this thread...
So how well 'vetted' were the UK scammers before you sent your coins off?
I suppose its a moot point if you were in cahoots with them as many people suspect
They weren't vetted before I lept, and you know that already.
"in cahoots with them"?... Pffft... *Hard Facepalm* been thru this too many times, it's old, and off-topic, and just wrong here.
WTF, another to ignore?
I got literally dozens of emails and PM's telling me to ignore people like you.
But I'd rather not, so get a grip, or be ignored.
Spoondoodles or whatever their name is has said they don't plan to mine, other than 24 hours of burn in testing which they donate to charity.
Any manufacturer that mines has an inherent conflict of interest with its customers especially when it can delay shipment (and keep mining for itself) without any real consequences.
Any manufacturer that mines has an inherent conflict of interest with its customers especially when it can delay shipment (and keep mining for itself) without any real consequences.
Let's face facts here. Conflict or not, every manufacturer mines with their own equipment. This is no secret. I'm pretty sure even BitMain has a farm of some sort.
I don't think they've denied it. In fact I think they've been open about it. "Spoondoodles" denies it.
I'm actually rather curious about what they're up to. They have hinted at releasing a second gen 28nm chip. Spondoolies is rather interesting as well, with a pre order period measured in weeks rather than months, and open accounting of their VC backing. I'm really hoping the whole "pre order" nonsense is coming to an end.
As for KNC going exclusively cloud, I think that's pretty much going to be the BTC mining paradigm from here on out. I don't particularly like that, but it is where trends are heading. And as you can see in my sig, I'm buying in at least partially. My piddling 80GH/s isn't cutting it on BTC anymore, though I'm not doing badly on alts.
I actually disagree with ConMan about the asics killing LTC/Scrypt. I think they'll give a boost to the coins with something to offer. I may be biased as I'm part of the team for Earthcoin, but I don't see this as a negative development, other than the pre order bullshit. Gridseeds, OTOH, those are cool. As the first generation of Scrypt ASIC's, they are not terrible at all. Not as fast as many had hoped, but the power consumption vs. a GPU is fantastic. And little machines like that, readily available, might just stop the huge centralization of hashpower that BTC is seeing right now. Gridseeds are likely to break below 200 a pop on the general market real soon, and I don't think they've stopped designing. Next gen ought to be interesting.
I do think the whole "coin of the day" thing is going to come to a crashing halt very soon, though. Things will have to get much more innovative, either in the mechanics or the marketing side, real soon. With 400+ coins out there, there has to be a pruning. Soon.
Can you explain how that statement equates into larger diffchanges over the next couple months?
It goes to show how fast Bitmain can ramp up production. KnC was never able to pump out the vast quantity of units that Bitmain does.
hmmm, i think u have overlooked the comming new Boss in town:
spongebob-tech:
http://www.spondoolies-tech.com/
Just like you ignored the company in the UK that you and your 'brother' sent your bitcoins to and were 'scammed' (i.e, shilled for so others would fall for the scam)
Go get some coffee dude... relax.
and btw... you are posting to comments from a few days back
they have been vetted now.
Just catching up on what i have missed - unlike you, i have a life outside of this thread...
So how well 'vetted' were the UK scammers before you sent your coins off?
I suppose its a moot point if you were in cahoots with them as many people suspect
Can you explain how that statement equates into larger diffchanges over the next couple months?
It goes to show how fast Bitmain can ramp up production. KnC was never able to pump out the vast quantity of units that Bitmain does.
hmmm, i think u have overlooked the comming new Boss in town:
spongebob-tech:
http://www.spondoolies-tech.com/
Just like you ignored the company in the UK that you and your 'brother' sent your bitcoins to and were 'scammed' (i.e, shilled for so others would fall for the scam)
Go get some coffee dude... relax.
and btw... you are posting to comments from a few days back
they have been vetted now.
... so basically, KFC got the bitcoin community to fund their mining farm?
Is that a trick question? heheGuess it depends how you look at it.
big Yes and absolutely not at the same time.
My question would be "Now that "plan B" is nil, will they sell cloud?
They sell crap, I have refunded my early costumer batch order and I am glad I did
Really they ARE mining with your mining power, you and all other "costumers" funded their farm.
Now go get yourselfs some KFC and enjoy this major Clusterfuck.
Cheers
So the movie industry funded them? Funny, I thought it was the miners...
Can you explain how that statement equates into larger diffchanges over the next couple months?
It goes to show how fast Bitmain can ramp up production. KnC was never able to pump out the vast quantity of units that Bitmain does.
hmmm, i think u have overlooked the comming new Boss in town:
spongebob-tech:
http://www.spondoolies-tech.com/
Just like you ignored the company in the UK that you and your 'brother' sent your bitcoins to and were 'scammed' (i.e, shilled for so others would fall for the scam)
wow phoenix is angry
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