Is mining legal in US

[reanor]

So I did some reading, I don't know if anyone knows this but it appears that if you mine cryptocurrencies from US and then exchange them for cash or other currencies you fall under the "Exchanger" qualification and supposed to have an MTS license(?) - 'money transfer services license' or something like that?

So if you mine from US what do you do about that? Do you have a license? Do you submit your income on annual tax return form? Has IRS ever called you asked you to give them your money? I know that they don't really know yet how to qualify this type of income but they will definitely do it. So I am trying to figure out now either I need to get any license before I actually start doing some real mining and then submit income on tax return next year maybe?

[meanig]

Miners in the US don't require any sort of licence.

http://www.theverge.com/2014/1/31/5364406/bitcoin-miners-investors-not-regulated-fincen-ruling

You pay tax when you convert the mined bitcoins into dollars. If you convert your coins as soon as you mine them you pay income tax on the profits. If you keep the bitcoins for a while before converting them you pay capital gains taxes.

[yatsey87]

No, you don't need one. What meanig said is all correct as far as I'm aware.

[reanor]

So say Kraken exchange, if you exchange your btc for $ on Kraken, you are done and you don't need to submit any tax or anything?

[meanig]

So say Kraken exchange, if you exchange your btc for $ on Kraken, you are done and you don't need to submit any tax or anything?

If you exchanged enough for it to be taxable then you must include that on your tax return.

[yatsey87]

So say Kraken exchange, if you exchange your btc for $ on Kraken, you are done and you don't need to submit any tax or anything?

Just read up on capital gains taxes. If it's only a small amount you wont need to pay any taxes, but you will if it goes over your countries tax threshold.

[mgio]

Miners in the US don't require any sort of licence.

http://www.theverge.com/2014/1/31/5364406/bitcoin-miners-investors-not-regulated-fincen-ruling

You pay tax when you convert the mined bitcoins into dollars. If you convert your coins as soon as you mine them you pay income tax on the profits. If you keep the bitcoins for a while before converting them you pay capital gains taxes.

Not true. You need to pay tax at the time the coins are mined.

The IRS hasn't said anything definite but that is most likely the way that it will be treated.

[meanig]

Miners in the US don't require any sort of licence.

http://www.theverge.com/2014/1/31/5364406/bitcoin-miners-investors-not-regulated-fincen-ruling

You pay tax when you convert the mined bitcoins into dollars. If you convert your coins as soon as you mine them you pay income tax on the profits. If you keep the bitcoins for a while before converting them you pay capital gains taxes.

Not true. You need to pay tax at the time the coins are mined.

The IRS hasn't said anything definite but that is most likely the way that it will be treated.

How can you claim something isn't true and then use the phrases "hasn't said anything definite" and "most likely" in the next sentence.

The IRS hasn't given guidance but the tax treatment I've described is how people have been paying Bitcoin related taxes for the last two years.

[imready2rock]

It is the first time I've heard about such license. Please tell me to make it clear - so they's no license to mining but you should pay tax for mining? right?

[Bob Derber]

There is no license I am aware of in the US required for mining itself.  This may be different for pool operators who's shares may be treated as securities, like stocks - but that is not related to the actual mining. 

This may be some confusion with the New York State's recent hearings on whether a 'bitlicense' is going to be put in place in NY.  But this is a future potential and no license is even on the books yet.  It also appears that such a license by NY is focused on money transmitting and not mining.

True, the IRS has not provided guidance on the taxation of bitcoins and I am not sure that reporting the coinbase of mining income at the time it is awarded is the correct treatment for tax purposes.  I think the accountants and attys. out there can go either way. 

The transaction fees that are included with the coinbase, however, present a different issue to me at least, as these are fees paid by others to miners so that their transaction are included in the block.... this could easily be income for services rendered and taxable when the coinbase is awarded or spendable 99 confirms later......