Bitcoin Forum
November 16, 2018, 06:48:16 AM *
News: Latest Bitcoin Core release: 0.17.0 [Torrent].
 
   Home   Help Search Login Register More  
Pages: [1] 2 3 4 »  All
  Print  
Author Topic: Do miners pay TAX over their earnings??  (Read 6697 times)
zekarsalih
Member
**
Offline Offline

Activity: 170
Merit: 10


View Profile
April 22, 2015, 04:25:23 PM
 #1

Please let me know if you have Knowledge or experience with this.
1542350896
Hero Member
*
Offline Offline

Posts: 1542350896

View Profile Personal Message (Offline)

Ignore
1542350896
Reply with quote  #2

1542350896
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1542350896
Hero Member
*
Offline Offline

Posts: 1542350896

View Profile Personal Message (Offline)

Ignore
1542350896
Reply with quote  #2

1542350896
Report to moderator
1542350896
Hero Member
*
Offline Offline

Posts: 1542350896

View Profile Personal Message (Offline)

Ignore
1542350896
Reply with quote  #2

1542350896
Report to moderator
DebitMe
Legendary
*
Offline Offline

Activity: 2030
Merit: 1001


Crypto-Games.net: Multiple coins, multiple games


View Profile
April 22, 2015, 04:26:35 PM
 #2

Please let me know if you have Knowledge or experience with this.

your question is vague because you didn't include where you live.

But to answer for the United States, as a miner, you must claim your earnings on your self employment tax calculation.  Then, you also have to pay any gains on the price movement of bitcoin.


▄▄▄████████▄▄▄
▄██████████████████▄
▄██████████████████████▄
██████████████████████████
████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
████████████████████████████
██████████████████████████
▀██████████████████████▀
▀██████████████████▀
▀▀▀████████▀▀▀
   ███████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
███████
BTC  ◉PLAY  ◉XMR  ◉DOGE  ◉STRAT  ◉ETH  ◉GRC  ◉LTC  ◉DASH  ◉PPC
     ▄▄██████████████▄▄
  ▄██████████████████████▄        █████
▄██████████████████████████▄      █████
████ ▄▄▄▄▄ ▄▄▄▄▄▄ ▄▄▄▄▄ ████     ▄██▀
████ █████ ██████ █████ ████    ▄██▀
████ █████ ██████ █████ ████    ██▀
████ █████ ██████ █████ ████    ██
████ ▀▀▀▀▀ ▀▀▀▀▀▀ ▀▀▀▀▀ ████ ▄██████▄
████████████████████████████ ████████
███████▀            ▀███████ ▀██████▀
█████▀                ▀█████
▀██████████████████████████▀
  ▀▀████████████████████▀▀ 
DICE           
BLACKJACK
PLINKO       
VIDEO POKER
ROULETTE     
LOTTO             
zekarsalih
Member
**
Offline Offline

Activity: 170
Merit: 10


View Profile
April 22, 2015, 04:29:52 PM
 #3

Im mining at a place with no such thing. I want to know what my benefit would be compared to companies in other place.  Considering to offer small batches of 5ths for a certain price, you recieve btc without tax and Electricity at 0,05.
DebitMe
Legendary
*
Offline Offline

Activity: 2030
Merit: 1001


Crypto-Games.net: Multiple coins, multiple games


View Profile
April 22, 2015, 04:35:54 PM
 #4

Im mining at a place with no such thing. I want to know what my benefit would be compared to companies in other place.  Considering to offer small batches of 5ths for a certain price, you recieve btc without tax and Electricity at 0,05.

I do not understand what your trying to say above.  It sounds like you will be paying dividends, which would still be taxable to the end user in the U.S., although I do not understand what your business plan is.  If you want a more accurate answer you need to provide where you reside, where your customers will reside, and your business plan, otherwise, no one will be able to help you.


▄▄▄████████▄▄▄
▄██████████████████▄
▄██████████████████████▄
██████████████████████████
████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
████████████████████████████
██████████████████████████
▀██████████████████████▀
▀██████████████████▀
▀▀▀████████▀▀▀
   ███████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
███████
BTC  ◉PLAY  ◉XMR  ◉DOGE  ◉STRAT  ◉ETH  ◉GRC  ◉LTC  ◉DASH  ◉PPC
     ▄▄██████████████▄▄
  ▄██████████████████████▄        █████
▄██████████████████████████▄      █████
████ ▄▄▄▄▄ ▄▄▄▄▄▄ ▄▄▄▄▄ ████     ▄██▀
████ █████ ██████ █████ ████    ▄██▀
████ █████ ██████ █████ ████    ██▀
████ █████ ██████ █████ ████    ██
████ ▀▀▀▀▀ ▀▀▀▀▀▀ ▀▀▀▀▀ ████ ▄██████▄
████████████████████████████ ████████
███████▀            ▀███████ ▀██████▀
█████▀                ▀█████
▀██████████████████████████▀
  ▀▀████████████████████▀▀ 
DICE           
BLACKJACK
PLINKO       
VIDEO POKER
ROULETTE     
LOTTO             
zekarsalih
Member
**
Offline Offline

Activity: 170
Merit: 10


View Profile
April 22, 2015, 05:18:45 PM
 #5

First of all, Who has chose you to represent them? Please   be more specific. I am not planning to put any business plan on a forum like this, I have been helpen a lot by Peopl.  If you chose not to help, dont rereply. However, if this is a cultural misunderstanding and you are interested in my plan, tell me.

I want to know my financial benefit from having no taxes on all my mining earnings.

Major operations in other countries do have this, do they Apple by it? Since bitcoin is hard to tracé. Are their different tax regulations for btc?
Blazr
Hero Member
*****
Offline Offline

Activity: 882
Merit: 1001



View Profile
April 22, 2015, 05:24:20 PM
 #6

Yes typically in most countries you will have to pay some kind of tax on most income, this can include income on bitcoin mining.

You really need to talk to a tax advisor or a lawyer to get a better answer.

DebitMe
Legendary
*
Offline Offline

Activity: 2030
Merit: 1001


Crypto-Games.net: Multiple coins, multiple games


View Profile
April 22, 2015, 05:28:42 PM
 #7

Yes typically in most countries you will have to pay some kind of tax on most income, this can include income on bitcoin mining.

You really need to talk to a tax advisor or a lawyer to get a better answer.

As a very broad answer, this is perfect.  I do not understand at all what your saying and have done nothing but try to provide the exact help you asked for, but there are hundreds of countries across the world, and each of them have their own tax rules.  Compound that with the fact that each customer may live in a different country with different tax rules and it is quickly revealed that you need to seek a person who is qualified in the area you want to do business in (and is fluent in your language, because your not getting your point across in English).


▄▄▄████████▄▄▄
▄██████████████████▄
▄██████████████████████▄
██████████████████████████
████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
████████████████████████████
██████████████████████████
▀██████████████████████▀
▀██████████████████▀
▀▀▀████████▀▀▀
   ███████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
███████
BTC  ◉PLAY  ◉XMR  ◉DOGE  ◉STRAT  ◉ETH  ◉GRC  ◉LTC  ◉DASH  ◉PPC
     ▄▄██████████████▄▄
  ▄██████████████████████▄        █████
▄██████████████████████████▄      █████
████ ▄▄▄▄▄ ▄▄▄▄▄▄ ▄▄▄▄▄ ████     ▄██▀
████ █████ ██████ █████ ████    ▄██▀
████ █████ ██████ █████ ████    ██▀
████ █████ ██████ █████ ████    ██
████ ▀▀▀▀▀ ▀▀▀▀▀▀ ▀▀▀▀▀ ████ ▄██████▄
████████████████████████████ ████████
███████▀            ▀███████ ▀██████▀
█████▀                ▀█████
▀██████████████████████████▀
  ▀▀████████████████████▀▀ 
DICE           
BLACKJACK
PLINKO       
VIDEO POKER
ROULETTE     
LOTTO             
Retired
Sr. Member
****
Offline Offline

Activity: 462
Merit: 250


einc.io


View Profile WWW
April 22, 2015, 05:30:08 PM
 #8

Yes typically in most countries you will have to pay some kind of tax on most income, this can include income on bitcoin mining.

You really need to talk to a tax advisor or a lawyer to get a better answer.
Exact. As well as the capital gains you might have from the Bitcoin Price Movements, as said above.

sherbyspark
Hero Member
*****
Offline Offline

Activity: 910
Merit: 1000


View Profile
April 22, 2015, 07:46:47 PM
 #9

I don't really think many Miners do pay taxes. The current income mining generates is anyway very low, and many people simply avoid the taxes, apart from a few people.
The big mining companies, must be paying it due to obvious reasons , but at a personal level I very much doubt it. Even the daily bitcoin user, has only a small percentage who report taxes on money earned .
DebitMe
Legendary
*
Offline Offline

Activity: 2030
Merit: 1001


Crypto-Games.net: Multiple coins, multiple games


View Profile
April 22, 2015, 08:10:28 PM
 #10

I don't really think many Miners do pay taxes. The current income mining generates is anyway very low, and many people simply avoid the taxes, apart from a few people.
The big mining companies, must be paying it due to obvious reasons , but at a personal level I very much doubt it. Even the daily bitcoin user, has only a small percentage who report taxes on money earned .

Regardless, whether or not a person chooses to pay it, legally, you have to.  And I guarantee that omitting disclosing the income on your tax returns will land you with much bigger fines from penalty and interest than actually giving it a good attempt.  Just because everyone else jumped off a bridge does not make it a good idea. The law clearly states it must be claimed.


▄▄▄████████▄▄▄
▄██████████████████▄
▄██████████████████████▄
██████████████████████████
████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
████████████████████████████
██████████████████████████
▀██████████████████████▀
▀██████████████████▀
▀▀▀████████▀▀▀
   ███████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
███████
BTC  ◉PLAY  ◉XMR  ◉DOGE  ◉STRAT  ◉ETH  ◉GRC  ◉LTC  ◉DASH  ◉PPC
     ▄▄██████████████▄▄
  ▄██████████████████████▄        █████
▄██████████████████████████▄      █████
████ ▄▄▄▄▄ ▄▄▄▄▄▄ ▄▄▄▄▄ ████     ▄██▀
████ █████ ██████ █████ ████    ▄██▀
████ █████ ██████ █████ ████    ██▀
████ █████ ██████ █████ ████    ██
████ ▀▀▀▀▀ ▀▀▀▀▀▀ ▀▀▀▀▀ ████ ▄██████▄
████████████████████████████ ████████
███████▀            ▀███████ ▀██████▀
█████▀                ▀█████
▀██████████████████████████▀
  ▀▀████████████████████▀▀ 
DICE           
BLACKJACK
PLINKO       
VIDEO POKER
ROULETTE     
LOTTO             
zekarsalih
Member
**
Offline Offline

Activity: 170
Merit: 10


View Profile
April 22, 2015, 08:28:29 PM
 #11

I agree with you guys and was thinking the same. I am mining in Kurdistan (Irak). It has no tax regulations and if I chose to scale up, my benefit would be that taxes are zero and electricity is 0.05 ct for large scale operations ( current price for my operation @ around 10 TH is 0.02 ct.).
Low electricity, no tax....

Are their still people looking for hosting at those prices you guys think? Since I wont be spending very much on electricity and other expenses.
josef2000
Sr. Member
****
Offline Offline

Activity: 280
Merit: 250


Bro, you need to try http://dadice.com


View Profile WWW
April 23, 2015, 03:50:51 PM
 #12

I think personal/private miners do not need to pay any tax if their income isnt big enough. Also, how should the government know that you are mining coins?!
But big companies that mine bitcoin will probably need to pay taxes if their getting alot of money. But also, how does the government know that you are mining? They have no proof until you show them your mining facility

███████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████
█   ⚂⚄⚀⚃⚅⚁    ██  d a d i c e  ██    Next Generation Dice Game
• Low 1% house edge. • Provably Fair.  
███████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████████
DebitMe
Legendary
*
Offline Offline

Activity: 2030
Merit: 1001


Crypto-Games.net: Multiple coins, multiple games


View Profile
April 23, 2015, 03:55:56 PM
 #13

I think personal/private miners do not need to pay any tax if their income isnt big enough. Also, how should the government know that you are mining coins?!
But big companies that mine bitcoin will probably need to pay taxes if their getting alot of money. But also, how does the government know that you are mining? They have no proof until you show them your mining facility

Do not spread FUD when you have no idea what your talking about.  Just because, "you think" doesn't mean it is true, especially when there are plenty of more knowledgeable people above you giving the exact opposite response.

As to how the government would know, there are a variety of ways, and all of them end up with accusing you of fraud and forcing you to pay the tax, as well as, penalties and interest that will probably amount to more than you would owe originally.  Add in your time wasted responding to the IRS, and it would be much easier to just pay the tax up front and not lie to the government.


▄▄▄████████▄▄▄
▄██████████████████▄
▄██████████████████████▄
██████████████████████████
████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
██████████████████████████████
████████████████████████████
██████████████████████████
▀██████████████████████▀
▀██████████████████▀
▀▀▀████████▀▀▀
   ███████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
██████████
███████
BTC  ◉PLAY  ◉XMR  ◉DOGE  ◉STRAT  ◉ETH  ◉GRC  ◉LTC  ◉DASH  ◉PPC
     ▄▄██████████████▄▄
  ▄██████████████████████▄        █████
▄██████████████████████████▄      █████
████ ▄▄▄▄▄ ▄▄▄▄▄▄ ▄▄▄▄▄ ████     ▄██▀
████ █████ ██████ █████ ████    ▄██▀
████ █████ ██████ █████ ████    ██▀
████ █████ ██████ █████ ████    ██
████ ▀▀▀▀▀ ▀▀▀▀▀▀ ▀▀▀▀▀ ████ ▄██████▄
████████████████████████████ ████████
███████▀            ▀███████ ▀██████▀
█████▀                ▀█████
▀██████████████████████████▀
  ▀▀████████████████████▀▀ 
DICE           
BLACKJACK
PLINKO       
VIDEO POKER
ROULETTE     
LOTTO             
fr4nkthetank
Legendary
*
Offline Offline

Activity: 1540
Merit: 1006


Now the money is free, and so the people will be


View Profile WWW
April 23, 2015, 05:14:17 PM
 #14

Please let me know if you have Knowledge or experience with this.


doesn't matter if you sell lemonade, apple pies or bitcoin mining.  you pay tax on all earnings.  of course, if you sell 250$ worth of lemonade you don't really have to declare it because its too small.  there is a threshold for declaration.

Rent this space !
vennali
Legendary
*
Offline Offline

Activity: 994
Merit: 1000


View Profile
April 23, 2015, 08:08:43 PM
 #15

Its always recommended and legally bound to pay taxes for any mining operations, however if you are in a country where the laws aren't strict then you may get away by not paying your taxes.


As to how the government would know, there are a variety of ways, and all of them end up with accusing you of fraud and forcing you to pay the tax, as well as, penalties and interest that will probably amount to more than you would owe originally.  Add in your time wasted responding to the IRS, and it would be much easier to just pay the tax up front and not lie to the government.

As for that, I don't think governments of countries in Asia really know much about bitcoin or care about it, so yes you may skip, but to avoid any legal problem in the future, its best to pay it .
NUFCrichard
Legendary
*
Offline Offline

Activity: 1218
Merit: 1003


View Profile
April 23, 2015, 08:09:48 PM
 #16

Please let me know if you have Knowledge or experience with this.

Yes you have to, but only on any profits you make, so probably not for most people, or very little.
It will be very hard to keep a track of, as each time you mine you will have gained capital, what is the price of that capital and what percentage of that is profit?  I guess you would work it out purely from a mining - electricity cost, then deduct the costs of computers, miners, coolers etc that you bought later.

There is software out there that can be used to help traders work out their tax to be paid, I guess that should work for mining too, luckily (kind of) the price of bitcoin is so low that most people are losing money and are tax exempt.  Don't forget to write that off next year as a capital loss though!
dmeter
Hero Member
*****
Offline Offline

Activity: 630
Merit: 500



View Profile
April 23, 2015, 09:31:19 PM
 #17

I agree with you guys and was thinking the same. I am mining in Kurdistan (Irak). It has no tax regulations and if I chose to scale up, my benefit would be that taxes are zero and electricity is 0.05 ct for large scale operations ( current price for my operation @ around 10 TH is 0.02 ct.).
Low electricity, no tax....

Are their still people looking for hosting at those prices you guys think? Since I wont be spending very much on electricity and other expenses.
Kurdistan (Irak) is in War whit ISIS and IRAK goverment, you think somebody bay gear and send you at your hosting.I don't trust for law protection  in EU country like Germany,France,Spain,GB.
And also at finish imagine i invest and receive 100000 BTC from you,for BTC i don't pay tax but when i exchange BTC in fiat and pull to my bank acount € i must pay tax in €.in difference amortisation/exspense- income.
GreydonIselmoe
Sr. Member
****
Offline Offline

Activity: 294
Merit: 250


Credits [CRE] - Community Manager


View Profile WWW
April 24, 2015, 01:32:12 AM
 #18

What?? So if I have a single antminer S4, is that deemable to be taxed in Canada?

What is the threshold for having to pay taxes of your profits?

████████  The next evolutionary step in crypto-currency | Sidechain technology - Claimable - sha256   ███████
████████████████  C R E D I T S - [C R E]  ███████████████
◥ Proof of Work / Proof of Deposit mining system ◥ Official Website ◥ Bitcointalk Thread ◥ Exchange
zekarsalih
Member
**
Offline Offline

Activity: 170
Merit: 10


View Profile
April 24, 2015, 03:28:29 AM
 #19

Yes very good, we have 1 stupid person joining us. Kurdistan is in war since before 1900, you know who else is ? USA.
Amph
Legendary
*
Offline Offline

Activity: 2044
Merit: 1003



View Profile
April 24, 2015, 07:03:16 AM
 #20

What?? So if I have a single antminer S4, is that deemable to be taxed in Canada?

What is the threshold for having to pay taxes of your profits?

you should check the rules for canada about bitcoin, if it isn't regulated yet then i would pay anything, you can always bring that excuse if they call you

also for a small amount of pur eprofit, i would not pay regardless, they don't control small, evaders of taxes
Pages: [1] 2 3 4 »  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!