how to mine bitcoin as a business

[gallery2000]

Hello,

I have a business and I would like to add btc mining as a source of revenue.   I have a couple of questions.  please share your experience and wisdom.

1.  mining machines should be tax deductible under section 179?
2.  mining income counts as business income?
3.  electricity as business expense?
4.  mining loss as business loss?

thank you

[Yakamoto]

1. None I think. Don't quote, and check your laws.
2. I believe it should, but again check laws and regulations. I know that mining was... capital gains? Go look around, there were threads created about it.
3. Do other businesses class electricity as an expense? That's probably your answer.
4. How do you lose mining capability?

Please, whatever you do, I'm NOT a 100% pure guide to follow. Always check your laws and regulations, and I'm not trying to give financial advice. Don't quote me on my statements, I'm just trying to point you in the right direction.

[98problems]

Mining in General is unprofitable and will likely not ROI after electricity and the miner is paid for. Even if you get a tax deduction you will simply lose less money but would not cause a profit.

[boraf]

Mining in General is unprofitable and will likely not ROI after electricity and the miner is paid for. Even if you get a tax deduction you will simply lose less money but would not cause a profit.

Yes. Yet, most new comers still attract to the mining business.

[gmx95]

I think these days you can make more through trading or investing or providing services for bitcoins, then actually through mining.

[Ron~Popeil]

The IRS rules are a headache to figure that out. If you do try it make sure you ere on the side of caution. They are rather unforgiving to say the least. Also check state and local regs of course.

[Ayers]

no good regulation for now

[tee-rex]

Mining in General is unprofitable and will likely not ROI after electricity and the miner is paid for. Even if you get a tax deduction you will simply lose less money but would not cause a profit.

Yes. Yet, most new comers still attract to the mining business.

And the only ones that get more or less constant flow of income are the mining equipment producers. Also, the question is inevitable as to why would they sell mining equipment if they could just mine themselves?

[kutaka]

Mining in General is unprofitable and will likely not ROI after electricity and the miner is paid for. Even if you get a tax deduction you will simply lose less money but would not cause a profit.

Yes. Yet, most new comers still attract to the mining business.

And the only ones that get more or less constant flow of income are the mining equipment producers. Also, the question is inevitable as to why would they sell mining equipment if they could just mine themselves?

This regarded argument again.

Why truck producers sell trucks to logistic companies if they could just transport goods themselves?

Why fishing equipment manufacturers sell fishing equipment while they could fish themselves?

[tee-rex]

Mining in General is unprofitable and will likely not ROI after electricity and the miner is paid for. Even if you get a tax deduction you will simply lose less money but would not cause a profit.

Yes. Yet, most new comers still attract to the mining business.

And the only ones that get more or less constant flow of income are the mining equipment producers. Also, the question is inevitable as to why would they sell mining equipment if they could just mine themselves?

This regarded argument again.

Why truck producers sell trucks to logistic companies if they could just transport goods themselves?

Why fishing equipment manufacturers sell fishing equipment while they could fish themselves?

Because in these cases both the truck producers and fishing equipment manufacturers need much more to earn profits than by simply selling their merchandise. Why would you as a trader sell an allegedly winning trading system if you could make money with it yourself?

[kutaka]

When you sell mining equipment you have your money right now. When you want to mine, you need to wait for ROI and take a risk that it will never pay for itself.

Additionally, to successfully mine you need more than a miner - cooling, cheap energy, IT crew etc.

Generally it is much better to sell right now and acquired money spend on further development of the company - unless of course there were hundreds of people ready to prepurchase something that does not exist yet from some shady companies - then you can indeed mine because you already have the money and the miner.

So please, do not repeat the bullshit that it is not worth to manufacture and sell mining equipment.

[InwardContour]

Hello,

I have a business and I would like to add btc mining as a source of revenue.   I have a couple of questions.  please share your experience and wisdom.

1.  mining machines should be tax deductible under section 179?
2.  mining income counts as business income?
3.  electricity as business expense?
4.  mining loss as business loss?

thank you

Forget mining as a source of revenue, it isn't profitable anymore.
If you want you could try to instamine some altcoins to have better chances to profit, but the safest way is buying bitcoins directly.

[tee-rex]

When you sell mining equipment you have your money right now. When you want to mine, you need to wait for ROI and take a risk that it will never pay for itself.

Additionally, to successfully mine you need more than a miner - cooling, cheap energy, IT crew etc.

Generally it is much better to sell right now and acquired money spend on further development of the company - unless of course there were hundreds of people ready to prepurchase something that does not exist yet from some shady companies - then you can indeed mine because you already have the money and the miner.

So please, do not repeat the bullshit that it is not worth to manufacture and sell mining equipment.

Your argument about having money right now makes sense only if you the mining equipment manufacturer could sell the equipment right at the moment you have produced it. But if mining on it wouldn't bring you profit, how on earth are you going to sell in the first place?

And where did I say that it is not worth to manufacture and sell mining equipment? Could you point me to that part in my posts?

[kutaka]

And the only ones that get more or less constant flow of income are the mining equipment producers. Also, the question is inevitable as to why would they sell mining equipment if they could just mine themselves?

Here you are;)

[tee-rex]

And the only ones that get more or less constant flow of income are the mining equipment producers. Also, the question is inevitable as to why would they sell mining equipment if they could just mine themselves?

Here you are;)

And you came to the conclusion this is equal to saying that it is not worth to manufacture and sell mining equipment? All I meant to say was that they might obtain more profits mining bitcoins themselves than selling the equipment. Really, if they don't sell it at the moment they have manufactured it, why not use it to mine some coins in the interim?

[dothebeats]

As always, any gains that one should have, be it income or profit, should be listed and declared to be taxed. However, it still depends on what laws you have in your country.

If you really have to have mining as another source of income together with your business, I suggest you study first when or how you're gonna get an ROI because in these days, mining bitcoin is not profitable unless you have some pretty good hardware that can cover your electricity expenses. Speculating in trading is a risky process to take part with if you want to profit but heck, investing itself is a risky process, isn't it?

[polynesia]

Hello,

I have a business and I would like to add btc mining as a source of revenue.   I have a couple of questions.  please share your experience and wisdom.

1.  mining machines should be tax deductible under section 179?
2.  mining income counts as business income?
3.  electricity as business expense?
4.  mining loss as business loss?

thank you

First question - Country of business?
A lot of mining rigs are set up in countries with low electricity cost...

[crazyALT47]

Hello,

I have a business and I would like to add btc mining as a source of revenue.   I have a couple of questions.  please share your experience and wisdom.

1.  mining machines should be tax deductible under section 179?
2.  mining income counts as business income?
3.  electricity as business expense?
4.  mining loss as business loss?

thank you

Forget mining as a source of revenue, it isn't profitable anymore.
If you want you could try to instamine some altcoins to have better chances to profit, but the safest way is buying bitcoins directly.

this has generally been true for a long time. Last year many people spent a lot on BFL miners in bitcoin, they were able to ROI in terms of fiat but this was only because their newly mined bitcoin was worth a lot more and they would have done far better if they had simply held on to the bitcoin they used.

[robhimself]

You've really missed the boat on the whole mining for profit thing in terms of BTC. There are some altcoins where you can make a profit mining, but it's a huge crapshoot.

[boraf]

Hello,

I have a business and I would like to add btc mining as a source of revenue.   I have a couple of questions.  please share your experience and wisdom.

1.  mining machines should be tax deductible under section 179?
2.  mining income counts as business income?
3.  electricity as business expense?
4.  mining loss as business loss?

thank you

Forget mining as a source of revenue, it isn't profitable anymore.
If you want you could try to instamine some altcoins to have better chances to profit, but the safest way is buying bitcoins directly.

this has generally been true for a long time. Last year many people spent a lot on BFL miners in bitcoin, they were able to ROI in terms of fiat but this was only because their newly mined bitcoin was worth a lot more and they would have done far better if they had simply held on to the bitcoin they used.

Holding and buying coin is superior to mining coin for a while. Most experience users should know that by now.