Litecoin mining rig 2016 tax form
I'm not building out with more than what I've got. I have to decide if I'm going to spend any more money on mining, or save everything. Big decision and allot to weigh out. It looks like you're new here. If you want to get involved, click one of these buttons! Fk the Irs lol. April edited April Also adaseb I'm relaxed enough it's just that these information you see here in mining are the serious stuff that many choose to put aside until it's too late to ignore.
Please if you've got things to share on why people should mine, do list it out instead of just targeting me and saying its still profitable in one sentence. I'd like to read about it to see if I missed anything out.
Oh and remember to make sure you tell the whole tale and not just the buttered up half of it. There's always two sides of the coin. It's only about which is better. In kotarius case tho, you can never win the TAX authorities in terms of claiming tax from them instead of paying more. For every tax u claim back, you will likely have paid more elsewhere. Nice how the IRS wants to be there collecting tax at just about every transfer isn't it? They take none of the risk, but always want a cut of the profits.
When did the IRS get the right to make arbitrary "rulings" anyhow? Are they a court? Of course, they are always looking out for their own interests, not ours. At some point, someone will have enough skin in the game to challenge the ruling in court.
Regarding altcoin taxation rules in the US, there's some off-base stuff going around. Brought this up in another thread a month ago. I wonder just how different the rules are in other countries, but I'm sure China and its endless supply of GPU's and electricity doesn't give a shit. Remember, you still have the basis income of the mined coin to realize in the year it was mined, whether or not you cashed them in, bought something with them, or converted them to another altcoin.
It all has to do with when a taxable event is triggered. When a coin is mined, it is counted as income by the IRS and the cash value of each coin, when mined, is your tax basis. Coins are classified as a capital asset for individuals, or possibly ordinary income for businesses. While the ruling is still not clear, the quote from the article should make it quite clear: Regardless, mined coins are counted as income in the year they were mined.
Wash rules also apply. A second taxable event is triggered when you exchange altcoins for cash, product or services. Most people won't be able to treat mined income as ordinary like a business, and will be taxed at the highest rate when filed. Unless you like risking imprisonment; don't think this doesn't happen, my cousin is a high-net-worth accountant and has seen what happens for as little as a couple grand.
No, I don't work for. Exchanging altcoins for cash and transferring the money to a bank can and likely will trigger a form, informing the IRS of your activity and tax obligations. I stopped mining two weeks ago. Excluding short-term tax obligations, electricity and a couple gpu's, I've still made a "good" profit.
Continuing to mine for fractions more as time goes by only goes to increase cost basis. I feel bad for those who are forced to continue mining just to cover hardware, and probably aren't even thinking of those taxes that are due or the jail time that may come if they ignore it.
Mining ETH is already less profitable than many people think, like alcohol was post-Volstead, even though it continues to be a thriving "business". Especially if you're willing to ignore tax obligations and risk jail time like Capone.
Have a nice day. The most relevant sections for most people here- and this is straight from the IRS. See Publication , Taxable and Nontaxable Income, for more information on taxable income.
See Chapter 10 of Publication , Tax Guide for Small Business, for more information on selfemployment tax and Publication , Business Expenses, for more information on determining whether expenses are from a business activity carried on to make a profit. Thank god I live in asia LOL. MrYukonC IRS doesn't give a crap about "tiers", only how big the fish are they want to go after first. Eventually they get to every level, and back taxes are a bitch. That's just one grey area not addressed by the tax code pubs.
I'm going to ping my cousin about it, see if she has any CPU time to figure this out now that tax season is over. Stay up way passed your bedtime, tweeking your program, and eventually you will get there.
Once you have done all that, and you have mastered your subject, then maybe you can write a guide for the rest of us. Anything else out there? Forget about trying to setup Linux, you should try PiMP! Easy to setup, friendly user and nice UI. Is anyone still following this?
Complete waste of money but if you want to make one just for fun then get a cheap 2nd hand GPU and components off ebay. Hi…I am keen on getting started but all the info I get is 2 to 3 years old. Can I convert into US dollars for normal use? His guide describes how to build a linux machine on the cheap with maximum hash […].
Follow a detailed set of instructions that will have you up and running with Linux on your litecoin mining rig in about an hour. BUT realistically, the rig has to be assembled and this surely takes some knowledge if you are not in the business of building computers.? I am a teacher and not a technical person; however, I do trade alt currencies on Bittrex.
I would now like to start mining merged mining seems the best option — mining different currencies that use the same algorithm. Probably years from now, a bitcoin will be on figures each. Buying as early as now is a good investment. There are plenty of ways you can buy bitcoin though and one of them is xmlgold.
They offer several withdrawal options too and they just re-launched their XMLGold card that helps people withdraw their bitcoins easily. Notify me of new posts by email. Click the image or heading in each section to jump to that piece of the guide. Hardware Learn what components give you the best bang-for-the-buck when it comes to litecoin mining. May 2, at 5: January 28, at 2: May 13, at 6: June 6, at 2: June 14, at 4: July 21, at 3: August 22, at 4: August 29, at 7: