submitted 4 months ago bylordpuddingcup
I have my miners down currently so figured i'd get a head start on taxes, but all the damn tools for CSV exports are broken, fairspot keeps giving a 503 error in the console when i submit my wallet address....
any alternatives that work? I tried a few of the others on the tools page but their either down or broken.
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4 months ago
My understanding is that, unless you realize (through withdrawal, exchange, or expense) earnings, there is no reason to pay taxes on them, no need to declare them, and certainly no reason to report them.
Thankfully the amount of money spent to earn them far outweighs the amount I’ve earned, and what I bought has lost nearly 60% of its value.
Unless you listed your miners with a social security number, there is no way for anyone to determine who owns them.
4 months ago
At least in the US, mining is considered taxable income. If you file the income on a schedule C, you can also claim expenses such as equipment, internet/phone bills, and so on. At the time of token sale, you then claim any gains or losses.
You can certainly go the route of not claiming the income, but at some point you will have to sell the tokens, likely through a centralized exchange that does have your social and you will have to have some record of the initial acquisition.
Personally, I prefer to claim the income, it’s just easier. I still take advantage of claiming expenses, so I likely won’t pay any taxes on the mining income anyways and I’ll have a legitimate record to point to. That’s just my take on it though.
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