New mining farm discussion

[Icarusfixius]

Hello all within the last month I have finally decided to start mining after sitting on the fence for years. I told myself I was just going to start with the GPU's in my computer and see how that went. I now have 32 GPU's, 30 RX470's and 2 GTX1060's. As I dig farther into this I have two problems I have been thinking through a lot.

The first one being heat output, I currently have 1 6GPU rig running in the basement and it keeps the basement at a toasty 77F. I am guessing if I add 4 more to this the heat will become unbearable down here. Do those of you that run miners at home run an air conditioner just for the rigs? would I be better suited to move them to the garage and attempt to control the temp out there? Would something like a dryer duct/vent outside with a fan even begin to put a dent in the heat? Right now the rig is sitting in the main part of my basement but I would like to move it to a closed off 10x15 closet. To succeed in doing so I will need to come up with a strategy.

The second is for those within the US and income tax. I would really rather not claim this but I don't want to get audited either. Are there any trick one can use to avoid claiming all the income com tax time? Run the miners under a business and roll the "income" into something else so there is no net income?

Any thoughts are greatly appreciated.

[1715420684]

1715420684

[Bones972]

So what is the tax implications for mining?  I hadn't really even thought about it... 

Well if it's taxed then I guess I'll be using all my electric, and rig builds as a write off along with my "Home Office" 
If that's the case... I think the tax man will be getting the short end of the straw!!

[dat_hash_tho]

The first one being heat output

Exhaust, exhaust exhaust exhaust.

Does your basement have a window that you could blow heat out of? Are you using server racks or what do your cases look like?

[wheelz1200]

I would look into getting a mini split air conditioning unit as well.  Super efficient and are ductless.  Might help with cooling the area on top of exausting the air.

[Icarusfixius]

Unfortunately I do not currently have any windows in the basement and whenre the miners are there isnt even a place to put a window. I could potentiall duct air out between the joists and then outside somehow. I am not sure if you would be able to move enough air through there though.

With a mini split A/C system would that use a noticeable amount of electricity? I was afraid that if you need to get too much active cooling involved you hurt the margins.

[Ayers]

i think if you are going to leave many miners in the basement you need to have a windows there or to redirect maybe the hot air outside with a tube? and for tax i just don't claim anything if i keepeverythign in bitcoin, if you are going to sell you need to claim your income or you would get in trouble, my suggestion is to keep everythign crypto and only sell what you need to cover the electricity

[Icarusfixius]

Not claiming anything that wasnt cashed out and leaving it in BTC was my first plan until I was reading technically you have to claim income based on the USD value of anything acquired within a year as "income". That said I have no idea how they would track that.

[olaf_d]

That said I have no idea how they would track that.

That's just it ... they can't.

Here, we have no income tax but do have sales tax. Technically, anything bought and sold privately is supposed to be recorded and a percentage paid to the state as a use tax. Nobody actually does, there's no way to track it.

[KaydenC]

If it's not a huge amount, try spending them on Amazon through purse.io or btc debit cards if you don't want to hold crypto.

[olaf_d]

If it's not a huge amount, try spending them on Amazon through purse.io or btc debit cards if you don't want to hold crypto.

I've used Gyft to do this as well. What I've been doing lately is buying on newegg with BTC and using shapeshift.io to convert and send directly to the payment address.

[Za1n]

As far as heat is concerned, yes move them out of the house and to the garage. Trying to cool any amount of rigs inside your house with A/C will send you to the poor house in a hurry.

You will need to think a lot bigger than dryer vents. I have a lot of rigs in my garage and put in a screen door for the back service entrance, added a big window on the non-house side, and keep my main garage door open about a foot to keep airflow decent in the warmer months. I am thinking this year to add one or two of those bigger industrial type fans, Home Depot sells a 36" one for $99 to help move more air as I added a few more rigs over the winter. Even warm 90F degree air will keep your GPUs cool, but the key is good air flow to remove the excess heat from the rigs and garage.

For taxes, even if you keep it all in bitcoin, you might still want to claim enough in deductions to offset your electric bills and rig depreciation. In the US at least I believe there is a limit to how long you can claim deductions. So say you been mining Bitcoin, or Alts and converting it to BTC, for several years then try to sell them, the rules for depreciation may not let you go back that far. Same with electric bills, claim your excess electrical use each year.

[Jamievs]

Don't forget about supplying your farm with power. That's my upcoming challenge..

[Icarusfixius]

I really wont have much of an issue with power. As I can add outlet on my own as needed. I am/was an electrical engineer and have the experience needed to add them. I will likely be putting a 220v 50amp outlet somewhere near the miners and be using a PDU to split it up to the miners. I really just need to come up with a heat plan.

How much airflow would we be talking would be needed for 6 rigs? If I was to put all the rigs in a 10x15 space how hot are we talking it would get in there? We you expect the temp to get up to a certain point and hold there?

I have also discussed with a local colo datacenter the costs of putting them there. The cost would be about the same as my power but I do lose the ease of access of them being right in my home.

[VoskCoin]

I am in the same process as you.. setting up a 5-10 rig farm in my garage.

Basically my understanding is I'll need to solve the power issue step 1

Step 2, set the rigs for proper airflow --- on racks / with a big industrial style fan to blow the air

Step 3 it will become too hot, http://www.mobileairsales.com/calssic-plus-26.php?gclid=Cj0KEQjw2-bHBRDEh6qk5b6yqKIBEiQAFUz29jbJtAvNpCu13HI72k6LZefRqiO5IGA0tL163aeLhnIaAsbV8P8HAQ I was thinking something along this line? What are everyones thoughts on this?

Step 4 either adding 1-2 windows to the garage or cracking the garage door + putting some sort of screen in crack so random things do not enter the garage, infiltrate the mining operation and blow it up!