irs is eager to collect tax on mining profit which is understandable and fair as stock traders to pay a hefty sum. But how about loss and business expenses?
You buy a very expense gpu at 800$ and then you havent managed to cover your purchase cost at the end of year then you got taxed, can you use it as an business expense?
I am thinking to go sole proprietar on this one.
yes you can but i would talk to some one who know wtf there doing an not here you will get good advice here but to be safe talk to someone who does it for a living that knows all the ends and outs of the IRS with mining there out there and usually cost about the same as any law or tax person .
how about electricity cost? it is also cost of doing business as far as mining concerned right? And in the US it aint no cheap!
I would talk to a tax firm/person some give advice free, to be safe .
how about electricity cost?
Yes you can
but it has a to be as a business cost,
Mining is a business by IRS rules in the US until they change it, which I wouldn't count on right now or until next year maybe when hopefully the ass hole in the WH won't have full control and will be forced to do shit or else
if you claim mining as a hobby you can't claim anything else an then it's claimed as a lose
< ( short version) there is more to it,I made it simple, so be careful .that's how it was explained to me by a expert.
an that new tax law is one big scam unless your rich, an those who back it up are either rich an it benefits them or have no clue.
so well see in Nov.
also the cost of doing business as far as mining is concerned aint cheap in the US no it can be very cheap if you own the house or building it's set up in then it's all most no cost, if you mean that, and there are no laws any miner has to follow yet at least in my state there is none. they are talking about it but only the Republican's are,that's so they can steal more ...
if you have Solar which I do the cost won't be so bad for electricity or i am about to find out by April, mine goes live then .
