I'm glad I didn't buy any more video cards, a 1080ti barley makes $1 a day

[undergroundrig]

Regarding this:

"Yes, when a taxpayer successfully “mines” virtual currency, the fair market value of the virtual currency as of the date of receipt is includible in gross income."

I am assuming that since 0.1 or less coins can be transferred at a time and potentially several times each day, it would be allowable to summarize that X number of coins were mined in a month then one can take the average coin price for said month and use that logic for calculating income, coin value, etc..? I believe as long as it is consistent for all coins and months for the year that they would accept that?

[1714224444]

1714224444

[EthanB]

For example you mined emc2 at $2 bucks last quarter irs counts that as income right away the day it's mined. However emc2 is now .20 cents And your screwed.

Do you have any sources for this kind of information? From everything that I have learned this is incorrect. I would not take what this user is saying as any kind of tax advice, because it doesn't seem to reference anything significant or be coming from an informed place. I've been wrong before, but I'm pretty sure that it is not considered income the moment it is mined. I think it becomes income once you exchange it for fiat, or goods with a referencable fiat value. Otherwise, it wouldn't make sense and they would be attempting to tax losses constantly. You can not be taxed for money you have not earned. If your business experiences a loss of 80% of it's earnings throughout the year, you are not expected to pay taxes on 100% of your earnings without considering the losses. Your taxable income is a product of gain/loss, from what I understand. You do not simply discredit your losses and tax yourself at the highest possible value. This isn't even what the IRS would suggest.

[Suslived]

I can't imagine why you guys trouble yourselves with taxation when you are mining shitcoins. Just record it when you cash out. There government will never even get proof that you did some mining once you send your coins to an exchange for cash out.

[lunobird]

I quoted the IRS website. It's very clear. You guys are such nub tards and still in disbelief. It's been well known for awhile and the veteran miners know this as well.

Coins mined is instant income tax. If you made a loss from holding it like most people that mined last quarter you can sell it and report a loss in value for the next tax year.

You still have to report the all time high value you mined at as income

[IamRune]

You could always "adjust" your minimum mining payout to a higher amount and avoid paying taxes until you receive the coins your your wallet.  Nonetheless, the mining bubble is bursting and the weak hands are getting out.  You can pickup cards on the cheap now.  Current rate is about $7 per MH if your mining ETH.

Just saw this on eBay.
https://www.ebay.com/itm/197MH-s-7-AMD-GPU-6-x-RX480-1-x-RX470-Ethereum-Mining-Rig-No-Reserve/152951331198?ssPageName=STRK%3AMEBIDX%3AIT&_trksid=p2060353.m1438.l2649

The GPU crash is a good thing if your long-term.  If your short term, might want to work on the exit strategy.

We may see $100 570 cards very shortly.

[lunobird]

I can't imagine why you guys trouble yourselves with taxation when you are mining shitcoins. Just record it when you cash out. There government will never even get proof that you did some mining once you send your coins to an exchange for cash out.

See that's where things can get messy.  You sent your btc to an exchange and "cash out" , The IRS will want to know what is your starting cost basis for this or even on your tax forms.  You magically had btc appeared into your coinbase account out of thin air.  And since everything is public on the btc blockchain they can start asking you questions which wallet address this came from if you got audited and what your starting cost basis was for this.  Then you will have to crack down and admit your mining and you may face some penalties and fines.

You shouldn't risk getting into trouble with the irs over a few bucks, Its best to report as accurately or just don't mine at all and sell off your mining rigs while prices are still at a decent premium.,  You wanna play the mining game you gota be prepared to bust out that pencil and do some serious paperwork tracking all your trades for 2018 as well as all your mined coins for all the exchanges you been trading on.

Don't get me wrong,  I would love for the IRS rules to be changed and less of a burden. I hope we can convince some politicians that are pro crypto.   Im just trying to help you guys out not to overlook this and end up getting in trouble from the IRS years down the line.

For the gamers that are less serious about mining and only got a couple of cards, and get free electricity from parents, only doing this to pay down their video cards,  you gota ask yourself if its worth all that paperwork and accounting work during tax day.?  Probably not,  so stop being a troll rising up the difficulty on everyone.

For the serious miners they know doing the proper paperwork is necessary and they treat it as a business.

[p337miner]

I stopped mining crypto a week ago no reason to make my rigs work when we are in bullshit age i wait and use my rigs when something profitable comes along.

Wouldn't the difficulty go up when something profitable comes along..

[lunobird]

I stopped mining crypto a week ago no reason to make my rigs work when we are in bullshit age i wait and use my rigs when something profitable comes along.

Wouldn't the difficulty go up when something profitable comes along..

Yep that's why you can never win big as a miner. Your always fighting for scraps while bitmain eats lobsters and steak everynight

[grendel25]

I only bought 1 1080ti. If I would have bought a rig I would be I the red and very upset

Hopefully, if you only bought one 1080ti you are putting it to good use for other things as your regular video card.  Personally, I would keep on mining coins that interest you despite rather or not they are currently "profitable".  Bitcoin wasn't profitable for a various times but look at it now.  People who mined back in the day when it wasn't worth it are very happy.  Not that I advocate mining.  I'm just interested in cryptocurrency.

[s.Zavgorod]

I only bought 1 1080ti. If I would have bought a rig I would be I the red and very upset

Do not be upset, there is still a lot of adventure. Both good and bad. Maybe the currency will go up, maybe not, leaving you with that 0.000002$.

[Xenoblate]

I stopped mining crypto a week ago no reason to make my rigs work when we are in bullshit age i wait and use my rigs when something profitable comes along.

Wouldn't the difficulty go up when something profitable comes along..

That has happened in the past many times.

[adaseb]

In my area many are trying to get rid of their 1080ti.

Almost each one is priced at MSRP, seems nobody wants to sell below MSRP.

So people aren't desperate yet.

[adam1230]

If you are mining with 1080ti you need to find best profitable coin instead of pointing your rig to nicehash.
Mining is serious business needs time and research all coins and pools. This is not a setup and forget scheme

[michellee]

If you are mining with 1080ti you need to find best profitable coin instead of pointing your rig to nicehash.
Mining is serious business needs time and research all coins and pools. This is not a setup and forget scheme

yes, I think in the nicehash software, there is a software to benchmark the video cards so we know what coin that is profitable to mining. and from that, we can start mining that coin. oh yeah, I remember that nicehash show how much our profit with the video cards so we know is it profitable for us or not, try to check by yourself.

[Xenoblate]

If you are mining with 1080ti you need to find best profitable coin instead of pointing your rig to nicehash.
Mining is serious business needs time and research all coins and pools. This is not a setup and forget scheme

I only mine to the pools. Compared to Nicehash, I got 10% more.

[sundownz]

Mining is still doing pretty well by me.

Counting absolute total cost of investment -- Computers, video cards, risers, electrical wiring, shelving, rooms fans, etc (literally everything I have bought for mining)... still getting 1/300th of total investment per day at todays prices. So in general forum terms less than 1-year ROI.

I got back in to mining about 15 months ago and have slowly built it all up so most of the stuff I have is actually already paid off... just looking at total cost / income as of today for the previous sentence.

If we see a bit of a bull market and things I am holding go back up a bit then it'll look even better.

[2stout]

Hopefully OP didn't overpay for the ti and is doing due diligence when selecting coin to mine as barely making a dollar a day seems to be on the very rather low end.

[Xianantung]

Mining is still doing pretty well by me.

Counting absolute total cost of investment -- Computers, video cards, risers, electrical wiring, shelving, rooms fans, etc (literally everything I have bought for mining)... still getting 1/300th of total investment per day at todays prices. So in general forum terms less than 1-year ROI.

I got back in to mining about 15 months ago and have slowly built it all up so most of the stuff I have is actually already paid off... just looking at total cost / income as of today for the previous sentence.

If we see a bit of a bull market and things I am holding go back up a bit then it'll look even better.

I think if you are doing well, that is because you have cheap electricity price.

[Mike011]

Hopefully OP didn't overpay for the ti and is doing due diligence when selecting coin to mine as barely making a dollar a day seems to be on the very rather low end.

yeah the topic was started back in march when the mining tanked hardest. a bit better situation now.

[remauto1187ma]

I quoted the IRS website. It's very clear. You guys are such nub tards and still in disbelief. It's been well known for awhile and the veteran miners know this as well.

Coins mined is instant income tax. If you made a loss from holding it like most people that mined last quarter you can sell it and report a loss in value for the next tax year.

You still have to report the all time high value you mined at as income

You scared of your own shadow?  As long as "you" dont cash out over the reporting threshold then the IRS will never know.  You think the IRS has the man power to come after or even look into someone that mine 10k or even 25k ?  They are looking for the whales.  The IRS has been gutted of agents over the last 10 years.  They simply dont have the manpower to go after the small times.

It all truly boils down to the worst case scenarios and that means NEVER talk to the IRS without a lawyer!