Taxes

[robertcarlyle]

How much in taxes do early miners have to pay to the u.s. government?

[Vod]

How much in taxes do early miners have to pay to the u.s. government?

Any income they make is subject to regular taxes.  The US Government collects no taxes from miners in other countries. 

[philipma1957]

How much in taxes do early miners have to pay to the u.s. government?

Early miners were mining coins worth under 10 cents a coin.

for 2009 and most of 2010

almost 5 million coins were mined.

 Those miners were not making much at all when those coins were mined.

So essentially they owed no tax the day they mined them.

now what would they owe if they held them.

Satoshi may have mined and held 1.0-1.7 million coins.

So if he sold them today at a cost basis of 1 cent a coin

1,700,000x79000=1.343×10¹¹ =  134,300,000,000

 0.20 x 134,300,000,000= 26,860,000,000 cap gains for feds and my state of NJ would charge about 6% 0r 7 billion so he would owe

33,860,000,000 and keep about 100,440,000,000

not bad 100.44 billion after tax.

[OgNasty]

How much in taxes do early miners have to pay to the u.s. government?

Early miners were mining coins worth under 10 cents a coin.

for 2009 and most of 2010

almost 5 million coins were mined.

 Those miners were not making much at all when those coins were mined.

So essentially they owed no tax the day they mined them.

This is a point that most people miss and a big reason why many early Bitcoiners sat on their stacks for so long.  When I decided to cash out a big pile last year, I was glad that they finally have good automated tax software, but wasn't happy that all those early deposits now had to be accounted for...  I ripped off the band aid with my tax filings last year, but it was not cheap.  Going forward though things should be much cleaner and less stressful for me personally as a result.