People are not taking farming seriously because it doesn't pay like it used to be.
Farming was never about "paying". It is about feeding.
Give your head a shake.y
crops grown.....equipment deducted like regular business...can borrow against the land and take loss on traditional investments like a loan.....can hoard/hold grain
(not taxed when taken out of ground like btc/crypto) 25% deduction on equipment and other expenses against gross income...etc.
When I can borrow without giving up private keys...like I do against my house and say like a farmer on almost everything tax wise.
Say a granddaughter who wants to be a vet and go to vet school say...asks the grandfather of 5 generations for $$$ to go to vet school.
He can 'borrow' like 5 previous generations in Minnesota against the land (without a lot of hoops to jump thru also like a house for a loan like mine) He would not sell the
land he would borrow against the land..no issues....no one takes the deed to my house...no private keys etc.
I would NOT sell the btc/crypto (ie virtual land as is done now as btc/crypto now) or makes no sense in the same situation.
Why would I sell btc/crypto? I 'assume' it likely will do better then 4% (at best) USA bonds....I could then borrow against
it (like a farmer) at say 8% if we had a coming recession....any of say $8k or more say in my traditional investments I could get $8k interest on $100k loan as off gross
income on my traditional investments....again recession/hedge...so really only down to $6k on the loan as such? Would get $2k back off gross income because it is a loan as
interest not income by selling. If I sell it is 15% and 10% to the state.....and then i've lost the virtual land and price of btc goes up...ie like a farmer...land lost...$$$ go up.
(help me here I think I am correct on this)
...
HOWEVER now because btc/crypto is NOT considered the same as land in this and other ways of lending...I can't do that
so like a farmer if I wanted to take a loan out in bad times I sure as hell would not sell the land i'd borrow against like "NORMAL" assets ..take any loss off my 'other
traditional income...but on above (guess scenario here..jump in anyone) I'd eat 6% borrow against house/btc/crypto whatever all day long to take off any future recession
losses like a farmer rather then have it sit in 3% or 5% bonds based on us dollar today.
again point being a farmer would borrow against assets and be able to take any interest/losses off all of his traditional assets in different manner
right now i think it is separate (could be wrong)...investment folks like edward jones generally frown on this now
but no way would a farmer sell his real land...so no way I will sell my real virtual bitcoin land...not to say I might not if private keys not involved in a
meaningful way with finance and take out a 'loan' in the future i might set aside 1 btc (in my mind likely it would be based on your wallet) and borrow like a farmer
on land (virtual land ie btc/crypto) and also (miners) ...equipment deducted like regular business...can borrow against the land and take loss on traditional
investments like a loan.....right now it just is NOT there yet....so I borrow such things off my paid off house because private keys are not involved etc,etc.
when I can mine/hold (not taxed like a farmer on btc or ie crops) can hodl btc and taxed at 15% capital gains If I sell!.....only yet still get regular deductions of 25%
hardware and such regular biz deductions yet
equipment (again like a farmer or at least big time soybean farmers here of 10k acres) then all 'heck' will break loose in mining again...anyone will gamble 25% hardware
deduction on btc/crypto equipment and expenses and hodl and only pay 15% capital gain taxes if/when they sell.
let me repeat that ...you still can manage selling btc/crypto to get hardware you can take it all off in 1 year or 5 years and get 25% off this value off all your gross
income..so in 1 year you have gotten the equipment at 25% discount vs what you would have been taxed on...and you pay NO tax as it is mined and ONLY pay
your 15% cap gains (in states w/o tax) IF you sell ..EVERYONE WOULD be incentivized in a big way to HODL....big miners little miners it would be a flood
Indeed....that is an easy match with the majority
hodl'ing...anyway 2013 when I went to my CPA (true story) and tried to explain btc and was prepared to eat the $6K of so loss in equipment she started to laugh and
pound table looking at IRS stuff and said you are a Farmer..hell half here CPA stuff shed does was farmer...mining wise...just imho NOT quite there yet
i have hopes however if they get rid of the double tax on mining as income and then cap gains when you sell it
thus why I lurk here and HOPE this fall such comes to pass....been out of asic mining since 2019..but man the difficulty rise on such above would be epic
and again it is all farmers (families still mostly) but huge farms here and soybeans for export to china (not so much now ouch) and corn for cattle feed
as to the food angle large turkey/chicken/beef feedlots/pork) also most of that goes to China as well so farmers are hurting
anyway my area thus the comparison on most of what used to happen and be justified under btc/crypto mining with CPA 2019 and before when i was in data hall mining
big time again
man would be fun if that happened I could play equipment and business deductions against HODL'ing with no income tax on mining like a frigging harp.....
would be epic...anyway thus why i'm looking at this thread..and why i like no 57.4% tariff if made in usa and no tariff on chips from Taiwan yet...
7% tax on that Georgia USA county and in USA shipping...it makes me break out in happy feet....
we will see...
also note don't sweat the length i type as fast as i think...as to how i think that is another issue indeed
brad
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