I'm wondering how I should file my mining rigs. Normally, I would make servers, laptops and desktops a capital asset and depreciate it. However, mining rigs and ASICs have a shorter life span and I typically sell them within a month or two of usage. I would like to file it as expenses but I'm not sure since IRS ruled coins as capital assets.
How are you guys filling your taxes?
If you are selling your ASIC rigs within a few months and in the same tax year that your purchase them, your question is irrelevant. From a business perspective it is best to sell any BTC mined right away.
Your tax equation should be as follows:
*Purchase price minus selling price (for ASICs) will be a short term capital gain.
*Cost of electricity to run ASICs should be an investment expense.
*(since you are selling your mined BTC right away your tax situation will be much simpler). The amount you sell your BTC for is short term capital gains (profit), (your cost basis is zero).
This is only applicable to situations when any ASICs that you own are sold in the same tax year. In the event of a tax audit and the IRS determines that something is misclassified then the net effect of total taxes due would be the same and you would not be penalized.
Although I believe this information to be correct it is advisable to seek professional tax assistance prior to filing taxes.