Sorry, that's $50 off 4, so $1650 total.

So I finally got my long awaited bonus miner a week or two before easter only to find out that it was a PoS. The fans were not strong enough to do very much of anything, but I had the miners in a warehouse at 12 degrees celsius (don't know what that is in fahrenheit or zargons) so they should have been fine. But no, 4 out of 5 cubes overheated and turned off sections. So I was planning to get some new fans, some cooling pads for the power regulators and put some new cooling paste on the chips, but until then I would just run them heavily underclocked.

However during the easter holidays the whole miner just dropped off the grid. When I came to the site all the PSUs were running, so no major power failure like I saw on the Jupiter I have. Eventually I disconnected all the miners from the controller board and the board started flashing its lights at startup. I was hopeful. But the router never found the controller/Neptune. I suspect it might be the beagle (I have never seen such a scruffy beagle in my life, it looks like it had a lobotomy), but I don't know.

Does anyone have any ideas? If it can be fixed, what fans should I get?

if you want to avoid taxes at all, just pay in bitcoin directly, and never exchange them, even if they track you, they can't do shit, because bitcoin it self isn't taxable, is just the gain in fiat that it is

Understood NCSUPanda. As long as we can agree that $580 (shipped) for a Neptune and $195 for an S4 is a more than little below market value, I think we have no quarrel here.

Thanks for the bump. For anyone looking to buy all 4, I'll knock $50 off the price (BTC payments only please). I can also get you mining right away against your pool(s) until I can ship them out (usually within 24 hours).

QTY 4 Operational Neptunes Shipped in the US for 10.331 BTC is rejected.

Thank you for your response. I have a follow up question to this answer specifically the timing involved when filing taxes.

"In the US, you would pay when you file your taxes because you have access to the cash whether you took it out or not."

say the conversion from cash to BTC to cash to BTC all happens before you file your taxes, so at the time of filing your taxes you are holding BTC. Are you supposed to report this string of conversions even though you now don't have access to the cash, since it is now in BTC. During this string on transactions the assumption would be that you are profiting in between, so would their be Capitial gains tax still for each instance of profit?  Yes.  Even though you no longer have the money, you did have it and chose not to set aside for taxes.  US looks at if you had money, you owe

examples:
cash->BTC->cash (YES CAPITIAL GAINS TAX)
cash->BTC->cash->BTC (?.?.?)
cash->BTC->cash->BTC -> cash (Probably Capitial Gains, but on what, how?)


As for this answer:
This is where it gets interesting.  Technically you should claim the gain because it becomes a barter transaction.  My guess is many do not, in which case your basis in the gold would be the basis you had in the btc.

does anyone have first hand knowledge of those who "do not" or more information about the rules behind the "Technically you should" bit. Every transaction would be looked at separately, so every time there was a conversion there would be a tax consequence.

Thanks

So as I understand, Long-term classification was the Year + 1 day you were talking about, which is a better investment bracket ? Correct. Long-term Captial gains are taxed at a lower rate than normal gain or income.

How would registering a business affect my investmented taxable amount compared to individual ? Is it a reduction ?If you get in the 'business' of buying/selling it would be similar to a broker in which case you are dealing with self-employment income tax and possible other issues (hobby/loss rules, etc.).

Something else that confuses me, is simply byuing bitcoins through a wallet like Coinbase or Circle from my bank account, holding until the price rises, then selling and making profit considered a capital gain / loss ? Yes.  The IRS considers BTC property which therefore would be a capital gain/loss.

I'll look into Schedule D.

On Capital Gains – Thought Experiment


Hi Everyone. I have a question/scenario about capital gains/taxes. Ideally I’d like an answer from someone from Canada who is an expert in taxes/capital gains. But I’m sure answers for other jurisdictions would be beneficial for myself and other users, who could benefit from the scenario I am about to propose.

Scenario ONE:

Say one invests $10000 in Bitcoins at 250$ for a total of 40 Bitcoins on an Exchange, like QuadrigaCX.

Suddenly over the course of a couple months, the price of those 40 Bitcoins goes up by 600% (to 1500$)

The current value of the hoard would then be $60000

One then sells those 40BTC for $60000 CAN on the exchange

IMPORTANT QUESTION 1:
The account value on the exchange would then be 60000$ CAN. Would one now have to pay capital gains on that cash in the exchange account? OR does one only pay capital gains if one withdrew that cash from the exchange to their bank account? At what point is one required to pay capital gains?In the US, you would pay when you file your taxes because you have access to the cash whether you took it out or not.

A Continuation of the Scenario:
The price of BTC now goes down to 750$. IF one doesn’t have to pay capital gains on that cash sitting in the exchange account one could then buy back even more BTC at the new reduced price with the $60000 sitting in the exchange account for a total of 80 BTC. And so they do.See above.

IMPORTANT QUESTION 2:
With those 80 Bitcoins one could then buy physical gold on sites like apmex.com for BTC. Let’s say someone buys $30000/40BTC worth of gold from one of this dealer, and pays with BTC. That’s about 20 oz’s of gold (at 1500$ per oz). Would one then have to pay some form of tax on that purchase of gold with BTC?This is where it gets interesting.  Technically you should claim the gain because it becomes a barter transaction.  My guess is many do not, in which case your basis in the gold would be the basis you had in the btc.

A Continuation of the Scenario:
What happens when one cashes that gold in for physical cash at a we buy gold location? So let’s say I sell 10/20 of those oz’s of gold I bought with BTC for 1200$ (say the price of gold went down from 1500 to 1200) each, for a total of 12000 (a technical loss of 3000). Would I then have to pay tax on that cash in value of 12000. OR could I claim a loss of 3000$ on my investment (REALLY stretching it)?Again, it would depend on how you reported the purchase of gold.




Scenario TWO:
Say instead of cashing out their 40BTC for $60000 in the first instance in the above scenario one decides to just directly cash out their BTC (now at $1500 each) into physical gold. No cash in between, just a direct purchase of physical gold with BTC from the exchange account.Same as above.

IMPORTANT QUESTION:
Is there any tax associated with this purchase? What about when the gold is sold for cash? What would the capital gains tax be if 40BTC bought 40oz’s of gold directly, and then that gold was sold for $60000 cash?Same as above.


Thank you for reading through this scenario, I hope it’s straight forward. I’m interested in your perspectives on this.

Can anyone tell me how much watts I'm using if on the advanced tab it's roughly showing 1460W? Also, anyone running a lot of TH with the Neptune?

I have invested $500 in a Bitcoin share, so I have to report $500 to the IRS ? Is the $500 all I have to report regardless of the gains ? What if there are loses ? Do you know what forms I file ? Any idea if registering an investment business would lower my taxable amount ?

Sorry for so many questions, I guess I'll just contact the local IRS office.

If you really want to take it safe just ask the IRS that you are going to buy some bitcoin and they will probably tell what you need to do before buying them. But there isn't any risk if you buy a small amount like 1-2 bitcoins. Good luck !