How are you guys paying for electricity and bills?

[BaNgTHai]

Do most of yall have day jobs and use your USD to pay for your bill or do you guys sell crypto to pay thus decreasing your potential from the profit? What are your guys strategies?

Im thinking Im just going to get a day job and be a slave to society for a little while.

[Branko]

Do most of yall have day jobs and use your USD to pay for your bill or do you guys sell crypto to pay thus decreasing your potential from the profit? What are your guys strategies?

I personally sell crypto for bill and haven't had the best strategy when selling crypto. Im thinking Im just going to get a day job and be a slave to society for a little while.

I pay it from daily job, but soon MWAT coin will pay for my electricity...I'll even have some to spare to sell to neighbours

[fanatic26]

The best way to mine is to not convert your crypto at all and just use fiat from your job to pay for it. Remember in the US you are paying capital gains on your conversions so every time you pay a bill with converted crypto you need to set aside what equates to about 40% of what you converted for taxes.



Convert ETH to $200 USD

Pay a $200 electric bill.

You owe ~$80 in taxes from that transaction.

[gotminer]

The best way to mine is to not convert your crypto at all and just use fiat from your job to pay for it. Remember in the US you are paying capital gains on your conversions so every time you pay a bill with converted crypto you need to set aside what equates to about 40% of what you converted for taxes.



Convert ETH to $200 USD

Pay a $200 electric bill.

You owe ~$80 in taxes from that transaction.

But the bill itself is a tax deduction, right?  I just pay my electrical costs out of my own pocket.  Saves me the hassle of possibly losing potential gains.

[BaNgTHai]

The best way to mine is to not convert your crypto at all and just use fiat from your job to pay for it. Remember in the US you are paying capital gains on your conversions so every time you pay a bill with converted crypto you need to set aside what equates to about 40% of what you converted for taxes.



Convert ETH to $200 USD

Pay a $200 electric bill.

You owe ~$80 in taxes from that transaction.

Yes I agree this is the best stragy by far. I guess I should get a day job. I want to go on record saying every time that I have taken out crypto, which has been hardly never, I have paid taxes

[flip4flop]

Usually, I will just cash out enough to cover electric for the month. Takes about a week of mining then the rest of the month I stash coins.  The last few months I haven't been selling any and just pay out of extra money for the month I make since my wife doesn't really mind and sees the long-term value of holding.

[BaNgTHai]

The best way to mine is to not convert your crypto at all and just use fiat from your job to pay for it. Remember in the US you are paying capital gains on your conversions so every time you pay a bill with converted crypto you need to set aside what equates to about 40% of what you converted for taxes.



Convert ETH to $200 USD

Pay a $200 electric bill.

You owe ~$80 in taxes from that transaction.

But the bill itself is a tax deduction, right?  I just pay my electrical costs out of my own pocket.  Saves me the hassle of possibly losing potential gains.

Isnt it a tax reduction only if you have a registered mining operation as a business?

[BaNgTHai]

Usually, I will just cash out enough to cover electric for the month. Takes about a week of mining then the rest of the month I stash coins.  The last few months I haven't been selling any and just pay out of extra money for the month I make since my wife doesn't really mind and sees the long-term value of holding.

Do you have a strategy on when to sell for bills? Or is what you are doing now, not taking out any crypto for the time being, part of your strategy that you had set in place when times like now come around (less profitable).

[whoismoses]

I pay my additional part of my bill per month out of my pocket, or as some would say my real job.

Feel free to sell your crypto to pay your bill. Let me fix the math from above...

You have a $200 electric bill (all from mining).

You sell $200 worth of crypto to pay your $200 bill.

So let’s make it easy, you do this every month for a total of $2400.

Your total income (before expenses) is $10,000.

You pay taxes on $10,000 - $2,400, which is $7,600.

You basically pay zero taxes on the crypto you sold to pay for electricity..

[NameTaken]

Bought 30TH/s on Hashflare last year before they increased the price to cover the electricity bill.

[BaNgTHai]

I pay my additional part of my bill per month out of my pocket, or as some would say my real job.

Feel free to sell your crypto to pay your bill. Let me fix the math from above...

You have a $200 electric bill (all from mining).

You sell $200 worth of crypto to pay your $200 bill.

So let’s make it easy, you do this every month for a total of $2400.

Your total income (before expenses) is $10,000.

You pay taxes on $10,000 - $2,400, which is $7,600.

You basically pay zero taxes on the crypto you sold to pay for electricity..

So who is to say I didnt make 3k instead of 10k making my taxable income 600$? I know this isnt legal advice but just curious if this is really how it would work lol

[BaNgTHai]

Bought 30TH/s on Hashflare last year before they increased the price to cover the electricity bill.

for what algo?
Im guessing SHA256

[NameTaken]

Bought 30TH/s on Hashflare last year before they increased the price to cover the electricity bill.

for what algo?
Im guessing SHA256

Scrypt and Ethash is measured in MH/s and Equihash in Sol/s.

[BaNgTHai]

Bought 30TH/s on Hashflare last year before they increased the price to cover the electricity bill.

for what algo?
Im guessing SHA256

Scrypt and Ethash is measured in MH/s and Equihash in Sol/s.

So my educated guess was correct

[whoismoses]

So who is to say I didnt make 3k instead of 10k making my taxable income 600$? I know this isnt legal advice but just curious if this is really how it would work lol

Miners are basically self employed unless they create an LLC or Corporation.

Your taxable income is total revenue - expenses.

If you depreciate your mining equipment in a single year you can subtract that amount from your revenue also, if not you have to take a percentage every year.

Don’t depreciate in a single year unless...

Total Revenue >= Electricity Cost + Costs of Rigs + Misc Expenses

Otherwise you will give up on the tax savings as your taxable income cannot be less than zero.

[BaNgTHai]

So who is to say I didnt make 3k instead of 10k making my taxable income 600$? I know this isnt legal advice but just curious if this is really how it would work lol

Miners are basically self employed unless they create an LLC or Corporation.

Your taxable income is total revenue - expenses.

If you depreciate your mining equipment in a single year you can subtract that amount from your revenue also, if not you have to take a percentage every year.

Don’t depreciate in a single year unless...

Total Revenue >= Electricity Cost + Costs of Rigs + Misc Expenses

Otherwise you will give up on the tax savings as your taxable income cannot be less than zero.

Nice this Is very helpful. Should i record how much I made in USD every month or keep the amount of coins that I made and convert to USD at a certain time frame. I believe it is the time that I actaully convert it right? What if i never cash out.

[Branko]

Seriously, buy some MWAT, specially if you're from Balkan area, and get your free energy


And don't forget to thank me with merit for info 


https://www.kucoin.com/#/trade.pro/MWAT-BTC

[BaNgTHai]

Seriously, buy some MWAT, specially if you're from Balkan area, and get your free energy


And don't forget to thank me with merit for info  


https://www.kucoin.com/#/trade.pro/MWAT-BTC

I have no idea what that is. And immmm ffffaaaaaaaarrrrrr from Balkan area lol

[Branko]

Seriously, buy some MWAT, specially if you're from Balkan area, and get your free energy


And don't forget to thank me with merit for info  


https://www.kucoin.com/#/trade.pro/MWAT-BTC

I have no idea what that is. And immmm ffffaaaaaaaarrrrrr from Balkan area lol

Well, if they succeed, you'll just have to wait a bit longer for free electricity...but meanwhile
you can still sell KWhs you get by holding MWATs  
They plan to go global

[Pekine]

with money off course