Setting up a Bitcoin Mining LLC

[neuman101]

Hi guys,

I bought some  s9s in late 2017 that i turned on last week. Im looking for the optimal set up for tax purposes. From what i can tell, the best way to do this is to set up an LLC, so that I can deduct the hardware expenses, depreciation, electricitiy, and other hosting costs against mining revenues.

Does anyone have any advice or other suggestions. If I set this up as an LLC, are there any other taxes i need to worry about?  With the difficulty spike in mining since late last year, it looks like mining wont be too profitable in year 1, so at least i can shield almost all of the income from the s9s, and if s9s are still profitable in 2019, then ill start actually having taxable earnings then.

Thanks for any help.

[1714024749]

1714024749

[1714024749]

1714024749

[1714024749]

1714024749

[rem26]

You probably lost most of the potential earnings you would have gotten by waiting until now to actually power them on.  Go read the speculation threads, ROI will take a long time right now. 

You will need to talk to a CPA about how to structure an LLC for this, you are on the right track; I'd be sure to keep your bank accounts seperate, as banks seem to shutdown crypto related stuff at random.

[neuman101]

Well i should clarify, i ordered them in late 2017, i received them in mid january. Yes the mining difficulty spike crushed the ROI. Mining looks to be pretty mediocre at best right now, unless bitcoin price surges again.

However, its still profitable, so its better to run them, then to not run them.