Lets say I mine 1 btc on a pool and the pool sends me the BTC. I have a record of the transaction being sent to my wallet. I can then look up the value on bitstamp at the time I received the BTC, lets say it's worth $580. The IRS says I'm taxed on the $580 as "income" minus any expenses such as cost of miner and electricity. Now I wait 6 months and the coin I mined is only worth $200 and I sell. The question becomes, have I just realized a $380 capital loss to adjust income? This is the big question I have from reading the IRS FAQ.
You can deduct 3000 per year of capital losses against regular income, the rest gets carried forward. You can also use the loss as an opportunity to realize tax free gains by selling other appreciated assets. There are some edge cases where this causes a problem (for example, you have a huge loss December 31 and a huge gain the following day) but for the most part it is fairly reasonable. If you don't understand these things learn or talk to an advisor. |
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All I'm thankful for is I didn't preorder those 1TH+ miners... with the difficulty this high and now daily mining being taxable as ordinary income (and not when btc are sold/exchanged) and with cost of hardware and power, there's no ROI left. IRS has essentially gifted mining to the Chinese.
The only way you'd owe taxes is if you were making income by mining (by definition!). From what I understood, that's only if you file "self-employment", then you can include expenses like hardware and power and then it will all net out plus some writedowns ... if not, then its just ordinary income (although obviously a monetary loss with costs and taxes included) If you are spending thousands to tens of thousands of dollars on mining equipment and power bills, that is a business, sole proprietorship (what you mean by self employment) or otherwise. It is not a lemonade stand or a garage sale. Possibly you could screw that up by not operating properly, keeping good records, etc. You may judge that not to be paperwork trouble and decide not to mine for that reason, which is certainly reasonable. But otherwise there is no reason shouldn't be able to treat it as a business and deduct expenses. |
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If you made a ton of micro payments over say the course of a year when the bitcoin price was rising relative to usd, what are you supposed to do, go back and find the exact capital gains of each micropayment and total them? That's what they are implying and few people are going to do that.
I wonder if you could get a computer to do that. You think? |
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There have been some rumors
Pics or it didn't happen. Oh wait. |
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With an 800 credit score you can get a credit card (if you don't already have one which is highly inconsistent with an 800 credit score) and then get a cash advance.
Just .... Stop ... Trying .... To .... Scam .... Us.
It's not working, it's not going to work, and you are wasting everyone's time including your own.
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Hello all I was trying to find a way to get a loan through paypal for $185 dollars but I'm confused about how the whole bitcoin system works. I need the loan as soon as possible and I'm trying to find a way to make it happen. I don't have collateral but I have a promissory document, ID, and verified paypal and verified google wallet and proof of address. Please help never done this before. Thank you
Hi, If you don't have collateral, you will not get a loan. Hope that sorts out the confusion for you.  Any chance we can put this right in the title of a sticky? |
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LOL. I have a stack of bills from DHL for import duties on miners that say otherwise. I takes a month or 2 for the bills to catch up with the shipments.
Sounds like quite a few of you are in for an unpleasant surprise.
You should not be getting charged import duties on miners from China to the US. The rate on computer equipment and components is 0%. I have no idea what the rules are if you bought from KnC or someone else not in China. DHL might be billing you a customs clearance service charge (this is distinct from taxes) or something else, or DHL or the shipper might be misclassifying the item. It is a lot longer than a month or two since I started ordering miner from China to the US. No tax bills. |
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Ok, just to know what big mistake I did mining them.  It wasn't necessarily a mistake except in hindsight. You took a risk and it hasn't paid off. That's how risks work. |
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Have collateral need .5 btc will pay back .7 btc by april 3rd thanks
Declined. Not offering sufficient collateral. |
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I would not accept that coin as collateral
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I noticed that you don't use conductive tabletops, antistatic straps
The picture of the guy with the "hat" shows an antistatic strap connected to the tabletop. Lower right. |
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If your breakeven is 60 days and the hardware is a brick in 90, you aren't even covering your expenses.
I know math is hard but if your breakeven is 60 days and you mine for 90 days you are making a profit. If you can break even on an investment in 60 days, I'd say you are doing pretty well. Only if you steal everything else required to operate the machine. Wait until the taxes and customs bills arrive for your Ants. Either you breakeven in 60 days or you don't. In reality 90-120 days has been more accurate. That's still a pretty good investment. No import taxes in the US. |
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Thread said "starting shipping in 7 days" It has now been 7 days. Hope you are still on track.
We are very happy to announce that the first units have rolled off the assembly line today! The units are now on their way to the burn-in tests. So roughly one day late. Not too bad. |
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If your breakeven is 60 days and the hardware is a brick in 90, you aren't even covering your expenses.
I know math is hard but if your breakeven is 60 days and you mine for 90 days you are making a profit. If you can break even on an investment in 60 days, I'd say you are doing pretty well. |
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Have collateral need .5 btc will pay back .7 btc by april 3rd thanks
PM me with details about your collateral |
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Is the Cointerra still mining at 1.6TH? After about 20 days, mine is only mining at 1.2 and after the upgrade to the latest firmware (7.6), it decreased to below 1.2. Many in the forum complain about the same problem.
We were running at ~1.6TH/s up until I updated the firmware. After the firmware upgrade (which from what I can tell lowers the temp limit to 76 degrees from 83 degrees) our machine is throttling like crazy, even in cool ambient temperatures. The result was a decrease in hashrate down to <1TH/s. I've just finished downgrading to the prior firmware. It would be an understatement to say that CoinTerra didn't live up to expectations. I'm very glad we only have one of these rigs to deal with. Have you checked the internal fans, or maybe a loose heatsink? |
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Hey smooth,
I'm looking for a 0.014 loan for two days with the repayment of 0.019.
I have 1 ltc for collateral.
I'm only doing loans of 0.05 or more. However, you do have decent collateral so if you post top level you might get someone to lend. |
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2x200amp for a home?
Wow.... must be a big ass home. You're rich already OP, just buy BTC instead of mining gear be the end of 2014, you will be even richer,
Trust me,... mining farm now is a terrible investment. Do calculation and you will see , you will be lucky to break even on S1. (get back BTC that you spent to buy miners)
Hard to say, maybe so maybe not. Depends on the future difficulty increases, and nobody knows that. It is plausible that you may turn a profit if difficulties rise by say 40% per month or less. |
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