Taxes Mining Bitcoins - page 2. | Bitcointalksearch.org

Lionidas

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Quote from: ?? on ??

are you sure the stuff about tax, in china, you only need to pay the eletronic fee

But were they not thinking about banning mining in China just last month along with all the things that happened to the exchanges over 2 months ago, I can't see them just asking you to pay the electricity bill. Undecided

Unless you are hiding the fact you are mining when the tax man cometh.

Jedzkie050617

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Quote from: glowing10 on November 24, 2017, 01:40:07 PM

Our country has still not come put with clear guidelines as to how to tax the income earned from bitcoin or gains from the btc. But considering the normal income form business or from profession it has to be treated in a similar way like income earned and pay your taxes as per the category one fits into. Same goes with mining the btc whatever difference earned (Sale - Cost) if positive taxes are applicable as per tax slabs.

Also in my country doesn't yet implemented taxes for mining a bitcoin and for having anyone a bitcoin throughout the country. I think having taxes may be authorized by the government or any sector in the government. I would say that the bitcoin is decentralized crypto currency that only lives in cyberworld and the government cannot interrupt the mining and anyone having a bitcoin.

cpfreeplz

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Quote from: P4ndoraBox on October 25, 2017, 12:08:10 AM

Im glad to live in Canada because our retarded Justin Trudeau doesnt even know what is bitcoin and we have not, or few, laws concerning cryptocurrencies.

Plus, canada has.cheap electricity. Thats why im trading and investing all my profiits into mining.

Lol yeah. Pretty sure he talks to his siblings. Maybe do a quick google champ. Kyle Kemper.

Mining is income. Declare it if you want. If you're being all legal you'll have to say how much it was worth on the date you mined it in CAD. Good luck with that!

sana54210

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Quote from: BeerMan81 on November 22, 2017, 11:46:54 PM

Quote from: hap0py on November 01, 2017, 10:23:43 AM

In the USA the IRS defines income as occurring as soon as you have a *right* to collect the income, not when it is received. Deteemining when that occurs with different payout methods and pools (e.g. nanopool doesn't really show a list of rewards, only a growing number and a list of payouts) is proving problematic.

Anyone have real knowledge, not opinion?

Irrelevant. I think It is when you trade for FIAT. They can't really track your wallet earnings, as this is truly private in nature, but i'm sure they will know sold currency on Coinbase (for example). Could be 1099-MISC or something. We shall see.

I really wonder as I really do not see how they want to know the wallet you are making use of to mine. Like you said, I guess we have to see how this whole thing will end up working out. One thing I am sure of is that there is no way they can start tracking the funds in wallets, when I can even always change my address at any time without problem.

Where the main taxing will come into play is when one is using an exchange to convert to fiat which is why governments are now making exchanges to be tax compliant.

glowing10

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Our country has still not come put with clear guidelines as to how to tax the income earned from bitcoin or gains from the btc. But considering the normal income form business or from profession it has to be treated in a similar way like income earned and pay your taxes as per the category one fits into. Same goes with mining the btc whatever difference earned (Sale - Cost) if positive taxes are applicable as per tax slabs.

Lionidas

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Quote from: Yarsk on November 23, 2017, 02:15:57 AM

Well I was studying the tax policies of Canada and the USA against bitcoin mining and other crypto related activities and I stumbled into the mind blowing fact that the both countries has a friendly law towards bitcoin like in the USA. IRS rulings are that Bitcoin mined does not become taxable untill you either sell it for cash or spend it on tangible property at which point it becomes taxable at the cash value of the amount of Bitcoin you spent.
And in Canada they possibly don't have any law on tax against bitcoin mining and activities apart from the bills you pay on power supply in carrying out your bitcoin activities.

This fact you are saying is quite interesting.
But does it also apply to exchanges when you put those mined bitcoin on them as well?
Without withdrawing them into a bank account of course but for just trading within the exchange.

Mhd-Bobbi

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It turns out that mining is taxed
what about your fee?
whether the fee includes tax

honeyb0y

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I think mining profit taxes should be computed the same as other income. Bitcoin income should only be computed once you converted it to your fiat currency and all your expenses to get that coin should be deducted first. How don't know how your country do it.

family934

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Quote from: bitterguy28 on November 23, 2017, 10:22:55 PM

Quote from: manuelcc on October 24, 2017, 01:52:32 PM

Somebody can help me about the taxes mining Bitcoins in Canada and USA. Taxes to import the hardware, income tax, etc.

i suggest researching if have a government regulation about mining in the said country because here in my country mining have nope taxes but the electricity power fees is very expensive, payment with expensive electricty i think is enough to pay taxes including in the electricity bill.

As a Canadian living in Ontario, I have been mining bitcoins and altcoins for quite a while and don't pay imposes on the bitcoin that I mined. In any case, that is for the most part since I don't offer.

In any case, from what I heard, on the off chance that you are a business and acknowledge bitcoin, you need to report it. In the event that you mined bitcoin and sold it, it considers capital pick up.

bitterguy28

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★Bitvest.io★ Play Plinko or Invest!

Quote from: manuelcc on October 24, 2017, 01:52:32 PM

Somebody can help me about the taxes mining Bitcoins in Canada and USA. Taxes to import the hardware, income tax, etc.

i suggest researching if have a government regulation about mining in the said country because here in my country mining have nope taxes but the electricity power fees is very expensive, payment with expensive electricty i think is enough to pay taxes including in the electricity bill.

shield132

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Won't open new thread and I'll ask here too:
If I have big mining datacenter and I am officially registered, do I have to pay % from mining in country where bitcoin isn't considered as currency? Of course I have to pay electricity fees but..... Imagine it's hosting and I host websites but of course I don't pay fees of their earning from ads. So now imagine it on mining farm. If I mine ether, monero or etc with card, do I have to pay fees to goverment? Because some companies have render centers and how is the situation, can't understand.

ajqjjj

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Not your Keys, not your Bitcoin

Quote from: bitcad4u on November 23, 2017, 01:29:00 PM

Quote from: Yarsk on November 23, 2017, 02:15:57 AM

Well I was studying the tax policies of Canada and the USA against bitcoin mining and other crypto related activities and I stumbled into the mind blowing fact that the both countries has a friendly law towards bitcoin like in the USA. IRS rulings are that Bitcoin mined does not become taxable untill you either sell it for cash or spend it on tangible property at which point it becomes taxable at the cash value of the amount of Bitcoin you spent.
And in Canada they possibly don't have any law on tax against bitcoin mining and activities apart from the bills you pay on power supply in carrying out your bitcoin activities.

Taxes in the bitcoin are computing the taxes once convert into income policies ,Canada and USA are the against to bitcoin mining and other crypto related activities .it's ruling are that bitcoin mined does until that bitcoin cash value of the amount of bitcoin you spend , mining and activities apart from you pay on power supply in bitcoin activities.

Not only this if you want to convert the bitcoin in the huge numbers you should show the income way to have the current accounts in your bank that is how the every country government follows with their banks.
I have tried to have the bank account especially for the trading and mining only but asked me file the taxes and askes to create the current account in such way.

bitcad4u

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Quote from: Yarsk on November 23, 2017, 02:15:57 AM

Well I was studying the tax policies of Canada and the USA against bitcoin mining and other crypto related activities and I stumbled into the mind blowing fact that the both countries has a friendly law towards bitcoin like in the USA. IRS rulings are that Bitcoin mined does not become taxable untill you either sell it for cash or spend it on tangible property at which point it becomes taxable at the cash value of the amount of Bitcoin you spent.
And in Canada they possibly don't have any law on tax against bitcoin mining and activities apart from the bills you pay on power supply in carrying out your bitcoin activities.

Taxes in the bitcoin are computing the taxes once convert into income policies ,Canada and USA are the against to bitcoin mining and other crypto related activities .it's ruling are that bitcoin mined does until that bitcoin cash value of the amount of bitcoin you spend , mining and activities apart from you pay on power supply in bitcoin activities.

Yarsk

full member

Activity: 448

Merit: 122

Well I was studying the tax policies of Canada and the USA against bitcoin mining and other crypto related activities and I stumbled into the mind blowing fact that the both countries has a friendly law towards bitcoin like in the USA. IRS rulings are that Bitcoin mined does not become taxable untill you either sell it for cash or spend it on tangible property at which point it becomes taxable at the cash value of the amount of Bitcoin you spent.
And in Canada they possibly don't have any law on tax against bitcoin mining and activities apart from the bills you pay on power supply in carrying out your bitcoin activities.

BeerMan81

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Quote from: hap0py on November 01, 2017, 10:23:43 AM

In the USA the IRS defines income as occurring as soon as you have a *right* to collect the income, not when it is received. Deteemining when that occurs with different payout methods and pools (e.g. nanopool doesn't really show a list of rewards, only a growing number and a list of payouts) is proving problematic.

Anyone have real knowledge, not opinion?

Irrelevant. I think It is when you trade for FIAT. They can't really track your wallet earnings, as this is truly private in nature, but i'm sure they will know sold currency on Coinbase (for example). Could be 1099-MISC or something. We shall see.

roddy5

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Quote from: manuelcc on October 24, 2017, 01:52:32 PM

Somebody can help me about the taxes mining Bitcoins in Canada and USA. Taxes to import the hardware, income tax, etc.

I Think taxes can only be computed once you converted your income to your
local currency less the expenses you had for your operation.

Agostosmori

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Quote from: manuelcc on October 24, 2017, 01:52:32 PM

Somebody can help me about the taxes mining Bitcoins in Canada and USA. Taxes to import the hardware, income tax, etc.

Taxes for your income from bitcoin mining should only be computed once you sold your coins for a fiat currency. But government should also compute your expenses first before taxing your income. And also tax should be computed on the amount that you farmed the coin not on how much you sold it.

QuintLeo

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Quote from: gbBit on November 11, 2017, 01:16:32 AM

What sort of depreciation models are you guys using for your miners? When I first started I came up with an exponential formula to depreciate each miner monthly by 10% each month from it's previous month NBV rounded up to the nearest $25. This would make each miner fully depreciated around 2 years which I figure is close to the working life of a miner. I was also trying to find a balance between difficulty and BTC price, but since I came up with that formula the BTC price has exploded so I'm thinking of possibly changing me deprecation model and interested in what other are doing.

Won't fly with the IRS, I'm 99.99% sure they count cryptocoin miners as "computer equipment" (which they are per most definitions) and require you to use THAT insanely long (even for REAL computers) depreciation timeframe.

MiningBattalion

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Quote from: gbBit on November 11, 2017, 01:16:32 AM

What sort of depreciation models are you guys using for your miners? When I first started I came up with an exponential formula to depreciate each miner monthly by 10% each month from it's previous month NBV rounded up to the nearest $25. This would make each miner fully depreciated around 2 years which I figure is close to the working life of a miner. I was also trying to find a balance between difficulty and BTC price, but since I came up with that formula the BTC price has exploded so I'm thinking of possibly changing me deprecation model and interested in what other are doing.

Mining is a one process of bitcoin system and it's a transaction process like selling and buying are the work in this and to the bitcoin mining tax is not bad because it's going to government so this are taxes mining Bitcoins.

gbBit

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Activity: 84

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What sort of depreciation models are you guys using for your miners? When I first started I came up with an exponential formula to depreciate each miner monthly by 10% each month from it's previous month NBV rounded up to the nearest $25. This would make each miner fully depreciated around 2 years which I figure is close to the working life of a miner. I was also trying to find a balance between difficulty and BTC price, but since I came up with that formula the BTC price has exploded so I'm thinking of possibly changing me deprecation model and interested in what other are doing.

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