Hi,
I just managed to recover my old Bitcoin Core Mining wallet since 2011.
It has mined 1249.2 BTC from from few famous mining (DeepBit) during that era. (No more balance of BTC)
This is just ledger on the mining since 2011 to 2013 only to be used as proof of mining during 2011 to 2013 era as hobbyist.
Since, there a law under " Hobbyist Mining" , you as the future owner of this wallet can save a lot of money in taxes at current price of 1200 BTC X $50,0000 = US$ 60,000,000
source :
https://www.cointracker.io/blog/how-is-cryptocurrency-mining-taxedOverview
The way cryptocurrency mining income is taxed depends on whether you are a hobbyist miner or a self-employed (business) miner. Here are some of the measures that the IRS provides for determining which camp you are in:
The manner in which the taxpayer carries on the activity
The expertise of the taxpayer or their advisors
The time and effort expended by the taxpayer in carrying on the activity
Expectation that assets used in activity may appreciate in value
The success of the taxpayer in carrying on other similar or dissimilar activities
The taxpayer’s history of income or losses with respect to the activity
The amount of occasional profits, if any, which are earned
As you can see, there is some amount of subjectivity to the classification. For example, if you operate a mining farm full-time you are more likely to be categorized as a business. If you are randomly doing some mining on an old computer, you are probably a hobbyist. In both cases you will need to report your mined coins as taxable ordinary income and your basis will be the fair market value at the time you receive the coins.
Hobbyists
Income will go on line 21 (other income) of your Form 1040 Schedule 1 (Additional Income and Adjustments to Income)
Expenses directly associated with mining will go on a Schedule A (Itemized Deductions), miscellaneous subject to 2% of AGI limitation (only applies to 2017 and prior years)
Business Miners
Income and expenses both go on a Schedule C form (Profit or Loss from Business)
Your income is subject to the 15.3% self-employment tax
You can deduct business related expenses to offset mining income
CoinTracker allows you to mark any received coins (from the Transactions page) as "Mined" so you can see the amount of mining income you have (on the Tax page), in addition to the capital gains which are already tracked separately
Since there are a lot of new Bitcoin Billionaire, anyone who is interested in this wallet can PM me.
As to protect the identity of this wallet, and future owner, I cannot post the public address, but part of it can do. let me know and we work it out for the interest of both parties.
