Being paid at my job as a 1099 has honestly been a masterclass in how to run a business. When I started mining, thankfully I had the sense to start a separate gig just for that and run it the same way. Writing hardware off is honestly like cheat codes as long as you're consistent with your moves. I have gotten warnings from TurboTax about showing a loss for multiple years, so every now and then I'll make sure I show a small profit.
I recently dissolved my llc in Nevada, it was costing 4k in fees and professional tax help. We only made 6k last year, all of this was demoralizing and hopeless. Trying to go forward, but not as a structured llc, but as self employed, but this is insane with regards to what forms are needed to mark capitals gains assets, deductions and reporting so I don't get fined. Great video, good luck to all navigating the US tax code.
I got into crypto and mining in 2022. I still have not gone the LLC route. I have not had huge tax gains yet as I just been hodling it. Koinly has worked well for me so far.
What about space used in your house, mileage to and from microcenter, business meetings at lunch for more knowledge. 6000 pound vehicle deductions. Cost of replaceing broken items etc.
Interesting about the vehicle. I have a hard time convincing my tax person that the truck I bought was for the mining business, since the mine was on my property and I couldn't explain regular use of the vehicle for the business. Going to MicroCenter wasn't valid use for a "business vehicle", based on my guy, but the mileage reimbursement for a personal vehicle was. My tax guy is a retired IRS agent, so I trust him, but your tax person may be more "flexible"... I don't want to deal with an audit for something marginal, at best.
Good points, the taxation rules are bit different in all countries. What you want to seriously check the taxation about, is trading. In some countries if you buy/sell cryptocurrency in exchange (trading it) there you can end up seeing a situation that you must pay taxes for profits for every trade, but you can NOT deduct the taxes from the trades with losses. I believe this must be an (greedy government) error in some rules in some countries just to be corrected sooner or later, but you want to make sure you doublecheck this before you put money in. One way to mine without need to pay income tax: mine coins which are not tradeable (basically, new speculative coins which have no set price anywhere)
Quick question....what level of contracting to you utilize? Free, pro, Expert or? Thank you! Ive been looking for something like this. I want to get ahead of this "tax" game! Much appreciated...🤘🏻
very helpful thanks! I just started small biz for mining this year after 5 years of hobby mining. I was wondering how to calculate power into taxes i would be interested to see how you do it for your biz. ✌️
So Mike, question. What about if you move that crypto asset to a stable coin then a month or two later you buy another token. Haven't you simply delayed paying your capitol gains until you sell the 2nd crypto asset for US dollars? Great video as always!!
Hi, how about a US corporation using different DEX services like liquidity pool providers, borrowing and lending, etc.? Does CoinTracking support this?
so here is an example of what i plan to do i plan to setup a basic mining rig (6 gpu) to use on nicehash and mine bitcoin i also plan to buy the tangem wallet if i just let the bitcoin sit in nicehash i dont pay anything correct and if i transfer it to tangem wallet do i now need to pay taxes on it? as far as i know they dont know squat about it i do need help on these topics
Its bullshit that i have to pay tax on mining income. Lets say i mined 5 btc. I have to pay tax on that "income". Then lets say i sell it all later for fiat and cash out. I have to pay tax on it again?
Stop dumping all your crypto for useless inflated fiat and you will not have problems with taxes anymore. See issue solved mate, i did not need an almost 20 minutes video to fix it lol Joke aside, have a great week my brother, may decentralization be with you 🙏🏽💪🏽
Being paid at my job as a 1099 has honestly been a masterclass in how to run a business. When I started mining, thankfully I had the sense to start a separate gig just for that and run it the same way. Writing hardware off is honestly like cheat codes as long as you're consistent with your moves. I have gotten warnings from TurboTax about showing a loss for multiple years, so every now and then I'll make sure I show a small profit.
Every year I get better at this. Thanks Mike for sharing your experiences. It’s always helpful
I recently dissolved my llc in Nevada, it was costing 4k in fees and professional tax help. We only made 6k last year, all of this was demoralizing and hopeless. Trying to go forward, but not as a structured llc, but as self employed, but this is insane with regards to what forms are needed to mark capitals gains assets, deductions and reporting so I don't get fined. Great video, good luck to all navigating the US tax code.
I got into crypto and mining in 2022. I still have not gone the LLC route. I have not had huge tax gains yet as I just been hodling it. Koinly has worked well for me so far.
Nice one, thanks for doing this video, I'm sure it will be very useful to many ! Love the chill tunes man 👌🕺🕺
What about space used in your house, mileage to and from microcenter, business meetings at lunch for more knowledge. 6000 pound vehicle deductions. Cost of replaceing broken items etc.
Yes to all
Interesting about the vehicle. I have a hard time convincing my tax person that the truck I bought was for the mining business, since the mine was on my property and I couldn't explain regular use of the vehicle for the business. Going to MicroCenter wasn't valid use for a "business vehicle", based on my guy, but the mileage reimbursement for a personal vehicle was. My tax guy is a retired IRS agent, so I trust him, but your tax person may be more "flexible"... I don't want to deal with an audit for something marginal, at best.
@@Average_Geo you are probably right about the mileage only in the case you wkrk from home.
Fantastic info Red Fox!
Good points, the taxation rules are bit different in all countries. What you want to seriously check the taxation about, is trading. In some countries if you buy/sell cryptocurrency in exchange (trading it) there you can end up seeing a situation that you must pay taxes for profits for every trade, but you can NOT deduct the taxes from the trades with losses. I believe this must be an (greedy government) error in some rules in some countries just to be corrected sooner or later, but you want to make sure you doublecheck this before you put money in. One way to mine without need to pay income tax: mine coins which are not tradeable (basically, new speculative coins which have no set price anywhere)
You made it sound much easier than it really is 😢, thanks for the tips though
Hey Mike, any thoughts on LLC vs sole proprietorship? Is the only additional LLC benefit reduced legal liability?
Quick question....what level of contracting to you utilize? Free, pro, Expert or?
Thank you! Ive been looking for something like this. I want to get ahead of this "tax" game! Much appreciated...🤘🏻
Thank you for the video 😊
If we agree the effective life of RTX 4090 is 4 years. You can deduct ~$500/year from taxable income. Is it right? How it is calculated in your area?
very helpful thanks! I just started small biz for mining this year after 5 years of hobby mining. I was wondering how to calculate power into taxes i would be interested to see how you do it for your biz. ✌️
So Mike, question. What about if you move that crypto asset to a stable coin then a month or two later you buy another token. Haven't you simply delayed paying your capitol gains until you sell the 2nd crypto asset for US dollars? Great video as always!!
Hi, how about a US corporation using different DEX services like liquidity pool providers, borrowing and lending, etc.? Does CoinTracking support this?
When someone mined 0.5 BTC in 2024 and didnt sell that BTC. He paid $30,000 for the power and service. What would be the tax in your area?
so here is an example of what i plan to do i plan to setup a basic mining rig (6 gpu) to use on nicehash and mine bitcoin i also plan to buy the tangem wallet if i just let the bitcoin sit in nicehash i dont pay anything correct and if i transfer it to tangem wallet do i now need to pay taxes on it? as far as i know they dont know squat about it i do need help on these topics
Yes how do you calculate your energy use?!
Thank you ✌️
Do us miners have to pay tax kn the crypto when we sell it for fiat too? Or only when we receive it?
Whatever mining coins means, i think they got lost in that boating accident that claimed the firearms i used to own. 😂
Taxable event for passive income from mining a certain coin. What about selling the coin for fiat, another taxable event? Double tax event?
Its bullshit that i have to pay tax on mining income.
Lets say i mined 5 btc. I have to pay tax on that "income".
Then lets say i sell it all later for fiat and cash out. I have to pay tax on it again?
If it’s worth more than the price at which you mined it at you then yes you have to pay capitals gains tax on the profit.
Do you also have to pay taxes if let's say you are mining with a few 6-7 gpu's? We are talking about penny profits here
Yes but if you aren’t selling on an exchange then there is no way for them to find out.
what are these taxes that you speak of?
But what happens if you pay taxes on earned crypto. And the crypto drops.. Do you then claim as a loss for that year..
You can only claim as a loss if you sell it.
@@RedFoxCrypto So pre-emptively pay tax...rigged. lol
I wish I was educated enough to fight the irs and ask them for there wallet address so I can pay the % I mined!
Crypto shouldn’t be Taxed, this is Stupid
The irs is evil
Tax is slavery. So, yeah we shouldn't run our society off of it.
what about neox Inode????
wondering the same thing
Stop dumping all your crypto for useless inflated fiat and you will not have problems with taxes anymore.
See issue solved mate, i did not need an almost 20 minutes video to fix it lol
Joke aside, have a great week my brother, may decentralization be with you 🙏🏽💪🏽
1 word, monero
bullshit come to kuwait electric free no tax just relax
glad i only have to pay 0.11% tax on crypto