Topic: US Mining Hardware Deduction/Depreciation - page 3. (Read 14065 times)
Is this all just standard schedule C stuff for an individual or does this require any special legal manuevering?
Is there anybody out there with real advice on the basics on how mining hardware could properly be deducted for US tax purposes?
Standard depreciation schedule ideas seem completely insane for the cost of hardware that gets bricked within well under a year.
Any legitimate advice, even on how to properly explain this to a tax professional, is greatly appreciated, as I'm sure lots of people have this same question.
Please no general conspiracy theories or bitching, because I understand it's nice to have political opinions, but what you think about the IRS is not helpful to people trying to actually accomplish something.
Standard depreciation schedule ideas seem completely insane for the cost of hardware that gets bricked within well under a year.
Any legitimate advice, even on how to properly explain this to a tax professional, is greatly appreciated, as I'm sure lots of people have this same question.
Please no general conspiracy theories or bitching, because I understand it's nice to have political opinions, but what you think about the IRS is not helpful to people trying to actually accomplish something.
By the nature of capitalizing equipment if it's not intended to serve a use for more than 1 year you cannot depreciate it. No matter how much someone may want to there isn't a way to depreciate something that will only serve a use for less than a year. Now, with that said, the outlook might change if BTC appreciates significantly in price, but your forecast of useful life is supposed to be based on historical evidence, and thus far ASIC gear shows no evidence of a useful life beyond 12 months.
In my own operation I am flipping old equipment anyways, so I won't even come close to a year. Purchase price of the asset is an expense, and the salvage value is what you sell it for and is recorded as a revenue. This is a line item against expense in the same year, and just added to revenue if the sale happens in the following year. Personally, based on my mining experience (which is what your accounting is supposed to be based off), the idea of putting any ASIC gear on a depreciation schedule sounds completely ridiculous.
I'd assume since to the IRS, miners are creating "property" not unlike any other product, mining machines can be counted as manufacturing equipment, as well as costs incurred to operate them.
Again that is my assumption, but this does need more clarification from someone more certified than I.
Again that is my assumption, but this does need more clarification from someone more certified than I.
Is there anybody out there with real advice on the basics on how mining hardware could properly be deducted for US tax purposes?
Standard depreciation schedule ideas seem completely insane for the cost of hardware that gets bricked within well under a year.
Any legitimate advice, even on how to properly explain this to a tax professional, is greatly appreciated, as I'm sure lots of people have this same question.
Please no general conspiracy theories or bitching, because I understand it's nice to have political opinions, but what you think about the IRS is not helpful to people trying to actually accomplish something.
Standard depreciation schedule ideas seem completely insane for the cost of hardware that gets bricked within well under a year.
Any legitimate advice, even on how to properly explain this to a tax professional, is greatly appreciated, as I'm sure lots of people have this same question.
Please no general conspiracy theories or bitching, because I understand it's nice to have political opinions, but what you think about the IRS is not helpful to people trying to actually accomplish something.
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