Mining rigs and taxs

[navydude]

This might not be the correct place to ask but has anyone successfully deducted there rigs and expenses for mining? I have done a bit of googling but not definitive answer. Just looking for answers on how to go about it and should I even bother.   

[1715240041]

1715240041

[Eyedol-X]

This might not be the correct place to ask but has anyone successfully deducted there rigs and expenses for mining? I have done a bit of googling but not definitive answer. Just looking for answers on how to go about it and should I even bother.   

Afaik, people that have setup legitimate business and appropriate accounting for such do it all the time. Individuals I believe it works a little differently. I recommend you contact a tax professional to give you the right answers.

Based upon your name, if you're in the military I would be 100% sure you're appropriately reporting all your income

[navydude]

Thanks for the reply. Contacting a CPA soon to see what can be done. As for reporting all my income ....of course I do!

[mettalmag]

Thanks for the reply. Contacting an CPA soon to see what can be done. As for reporting all my income ....of course I do!

as far as I know there are no taxes when you are mining or holding your coins in cryptocurrency, only after cashing them out you pay taxes. This statement applies for USA maybe? For us in Georgia there are no any kind of taxes even for cashing them out until now

[navydude]

My biggest concern was deducting the equipment and electricity.

[TobiasVR]

relying on the tools we use, to vga with 4 type rx 470 nitro 4 GB, the cost of electricity for 1 month approximately $4-$5

[64dimensions]

There are thread(s) on some of these questions up in Bitcoin legal. The answers should apply here.

I think the most important feature of a small biz is that you do your accounting on a cash basis.

[navydude]

relying on the tools we use, to vga with 4 type rx 470 nitro 4 GB, the cost of electricity for 1 month approximately $4-$5

Not sure exactly what this is but i have 42 r9-380x cards running and my electricity is between 300 to 500 in the winter months and 700 to 900 in the summer per month. So the $15k i put out on equipment and electrical upgrades plus 7 months this year on average of 500 per month electricity would make a huge difference to me.

There are thread(s) on some of these questions up in Bitcoin legal. The answers should apply here.

I think the most important feature of a small biz is that you do your accounting on a cash basis.

Thanks for this. I will look into it.

[Viperho]

This might not be the correct place to ask but has anyone successfully deducted there rigs and expenses for mining? I have done a bit of googling but not definitive answer. Just looking for answers on how to go about it and should I even bother.   

I found this article helpful:

http://www.bitcointaxsolutions.com/can-i-deduct-mining-costs/

[navydude]

This might not be the correct place to ask but has anyone successfully deducted there rigs and expenses for mining? I have done a bit of googling but not definitive answer. Just looking for answers on how to go about it and should I even bother.   

I found this article helpful:

http://www.bitcointaxsolutions.com/can-i-deduct-mining-costs/

Thanks. I did find that as well. I may be best to just forget it. With standard deductions vs my costs there is some difference but with the extra income would put me somewhere i dont wanna be. (I think) Will keep looking and running numbers to see what i can come up with.