Daily Mining Profits

SeymourGore said:
I'm liking Nicehash. Easy to set it up and forget about it - also easy to transfer BTC to Coinbase and then withdraw it into Paypal ($1 CAD fee for me).
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Do I have to report this as income?
I get SSI and am not supposed to have external income afaik.
 
Bassman99 said:
Do I have to report this as income?
I get SSI and am not supposed to have external income afaik.
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If you follow tax law yes. (Two options- hobby or business)
https://www.cointracker.io/blog/how-is-cryptocurrency-mining-taxed

and a really good article here:
https://www.coinbase.com/learn/tips-and-tutorials/crypto-and-bitcoin-taxes-US

You can spend it many places without paying taxes, or sell it on the classified if that’s your choice. Gyft.com let’s you buy Gift cards from over 200 places with BTC. https://www.gyft.com/bitcoin/

If you use Coinbase, know they are required to report large transaction customers to the IRS.
 
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Archaea said:
If you follow tax law yes.
https://www.cointracker.io/blog/how-is-cryptocurrency-mining-taxed

You can spend it many places without paying taxes, or sell it on the classified if that’s your choice. Gyft.com let’s you buy Gift cards from over 200 places with BTC. If you use Coinbase, know they are required to report large transaction customers to the IRS.
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I just want to accrue it for now.
Can I just give it away so its not capitol gain or income?
Coinbase setup was pretty invasive...
 
Archaea said:
Apparently GDDR6, GDDR5, and below had lesser heat tolerances. I’ve read they were like 20* C lower. But yeah, we never knew.
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Lesser heat tolerance yet produces more heat. But Nvidia didnt do anything extra to cool it.
 
Bassman99 said:
I just want to accrue it for now.
Can I just give it away so its not capitol gain or income?
Coinbase setup was pretty invasive...
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I linked a couple more articles above that I found helpful. You should ask your tax person or just spend it on the down low if you want to avoid taxes. Newegg doesn’t charge tax and accepts BTC. Same for Gyft.

If you want to hold it and accrue long term - I’d advise paying taxes as you mine it as is lawful. I suspect as time goes on it will be harder to cash out crypto to fiat money without raising the tax man’s gaze, and why accrue, if you can’t cash out later?
 
Archaea said:
I linked a couple more articles above that I found helpful. You should ask your tax person or just spend it on the down low if you want to avoid taxes. Newegg doesn’t charge tax and accepts BTC. Same for Gyft.

If you want to hold it and accrue long term - I’d advise paying taxes as you mine it as is lawful. I suspect as time goes on it will be harder to cash out crypto to fiat money without raising the tax man’s gaze, and why accrue, if you can’t cash out later?
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I dont file taxes since I only get SSI Disability, and dont want to change that.
Maybe coin base isnt a good idea for me lol.
Maybe Ill have my girlfriend do the mining.
 
The addiction is real...

PXL_20210423_025534277.png
 
Bassman99 said:
I dont file taxes since I only get SSI Disability, and dont want to change that.
Maybe coin base isnt a good idea for me lol.
Maybe Ill have my girlfriend do the mining.
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My wife makes less and profits will change my tax bracket and affect other deductions, so she has all accounts in her name.
 
Bassman99 said:
I dont file taxes since I only get SSI Disability, and dont want to change that.
Maybe coin base isnt a good idea for me lol.
Maybe Ill have my girlfriend do the mining.
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Most of the exchanges have KYC (know your customer) and those that don’t seem headed that way. It’s a sad direction as it would be nice if governments could just stay out of crypto all together. But BTC isn’t anonymous, and they’ve been able to track people (with difficulty) for at least 8 years or so—since proving so with Silk Road.

You are a small fish. Chances are they will never care about you. But it’s not impossible to find out what crypto you’ve earned or spent and with your wallet addresses (realistically multiple addresses) disclosed they can see everything for your seed keys for all time because it’s open ledger.
 
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Archaea said:
Most of the exchanges have KYC (know your customer, and those that don’t seem headed that way. It’s a sad direction as it would be nice if governments could just stay out of crypto all together. But BTC isn’t anonymous, and they’ve been able to track people (with dofficulty) for at least 8 years or so. — since proving so with Silk Road. You are a small fish. Chances are they will never care about you. But it’s not impossible to find out what cryoto you’ve earned or spent— with your wallet addresses disclosed they can see everything because it’s open ledger.
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I was surprised the government didn't get involved much earlier. I know they thought it was nothing, but they tax everything. Any penny you get should be added as income, as ridiculous as it is, even from a yard sale!

So I expected them to hit crypto as soon as possible for something to tax.
 
Bassman99 said:
I just want to accrue it for now.
Can I just give it away so its not capitol gain or income?
Coinbase setup was pretty invasive...
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If you accrue it long-term you're going to pay capital gains on it. Which the government just announced today they're looking at increasing the tax rate of. Realistically I would look at monero, the resources Archaea provided, and contacting a tax consultant to see how you can reduce your taxes.

Also, I would get off coinbase and any KYC exchange if possible.
 
Andrew_Carr said:
If you accrue it long-term you're going to pay capital gains on it. Which the government just announced today they're looking at increasing the tax rate of. Realistically I would look at monero, the resources Archaea provided, and contacting a tax consultant to see how you can reduce your taxes.

Also, I would get off coinbase and any KYC exchange if possible.
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The hit on Capital Gains being worked through increases those making over $440,000, should not affect the 15% lower tier for married couples.

Does this thread also consider mining profits from previous mining for hold coins? As in 1000s of ARRR being sold?
 
My little Canadian lizard brain is turning here:

Would one be able to classify their mining as a business with 24/7 mining on their personal computer? (No mining specific hardware). They'd get hit with that 100% business income tax, but wouldn't all their expenses be eligible for deductions? (ie: increased power cost, hardware upgrades).

Basically what I'm trying to get at is could one claim their PC hardware upgrades as a business expense? It'd be a pretty sweet gig if one could claim all their hardware upgrades as a write off (even if most of their mining profit is being taxed).
 
SeymourGore said:
My little Canadian lizard brain is turning here:

Would one be able to classify their mining as a business with 24/7 mining on their personal computer? (No mining specific hardware). They'd get hit with that 100% business income tax, but wouldn't all their expenses be eligible for deductions? (ie: increased power cost, hardware upgrades).

Basically what I'm trying to get at is could one claim their PC hardware upgrades as a business expense? It'd be a pretty sweet gig if one could claim all their hardware upgrades as a write off (even if most of their mining profit is being taxed).
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It was mentioned in another post here in the last week. I couldn't find it though. It would need to be at a business, or at a building you rent or something. I can't remember the stipulations
 
SeymourGore said:
My little Canadian lizard brain is turning here:

Would one be able to classify their mining as a business with 24/7 mining on their personal computer? (No mining specific hardware). They'd get hit with that 100% business income tax, but wouldn't all their expenses be eligible for deductions? (ie: increased power cost, hardware upgrades).

Basically what I'm trying to get at is could one claim their PC hardware upgrades as a business expense? It'd be a pretty sweet gig if one could claim all their hardware upgrades as a write off (even if most of their mining profit is being taxed).
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Not sure on Canadian laws, but in the U.S., basically yes. The problem with doing it on a small scale, is that your wages are still taxed as normal and what you owe doesn't really change. Business expenses for something you do in addition to your day job don't subtract from the taxes you owe on wages. So if you make $100k in wages, owe $40k in taxes on wages, and write-off $3k in business expenses on $0 in business income you haven't changed your taxable amount at all. But if you earned $3k mining on $3k in hardware then you should be able to reduce the taxes you would owe on that $3k in business income due to your business expenses. If you quit your day-job and go all-in on mining then it becomes much more important, but as a side-gig most people probably aren't reporting the income and the amounts are low enough that the IRS probably doesn't care anyway.
 
The other concern with making it a business and claiming expenses is you now have to pay social security tax/self employment tax EVEN if it’s just a side business and your main job is still somewhere else.
 
SeymourGore said:
My little Canadian lizard brain is turning here:

Would one be able to classify their mining as a business with 24/7 mining on their personal computer? (No mining specific hardware). They'd get hit with that 100% business income tax, but wouldn't all their expenses be eligible for deductions? (ie: increased power cost, hardware upgrades).
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I think for most Canadians, claiming it as a "hobby" will be better. There you don't claim expenses but only half of the mining profit (edit: at the time when you trade the coins for fiat or other coins) is taxed at your marginal rate.
 
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In the US, you are taxed the value of the mined coin as income and then when you sell it, any capital gain tax. Tax twice for every coin mined and disposed of if you made a profit.
 
noko said:
In the US, you are taxed the value of the mined coin as income and then when you sell it, any capital gain tax. Tax twice for every coin mined and disposed of if you made a profit.
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Government is a disgusting greed machine
 
Bassman99 said:
I signed up with Coinbase, but havent deposited anything there.
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Me too, just to easily look at prices and such. No interest investing into crypto, too volatile. So I invest in crypto related exchanges, eg Voyager, BIGG, and Intellabridge. Somewhat less volatile, lol.
 
Archaea said:
Most of the exchanges have KYC (know your customer) and those that don’t seem headed that way. It’s a sad direction as it would be nice if governments could just stay out of crypto all together. But BTC isn’t anonymous, and they’ve been able to track people (with difficulty) for at least 8 years or so—since proving so with Silk Road.

You are a small fish. Chances are they will never care about you. But it’s not impossible to find out what crypto you’ve earned or spent and with your wallet addresses (realistically multiple addresses) disclosed they can see everything for your seed keys for all time because it’s open ledger.
Click to expand...

IRS is going after exchanges to report customers with dealings over $20k, they successfully got info from Coinbase I believe and next they are going after kraken and Poloniex.

There are nont KYC exchanges like Kucoin, or use DAX's which do not require anything really. But once you want to get it into Fiat...careful.
 
Zepher said:
Daily Profit dropped a lot for me the past 2 days, $5-6 vs $9-10.
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Yes same, even though I have only done it for 4 days total
I noticed BC dropped and thats what we get paid.
Can I just get paid in ETH? LOL

Like working at a Dodge factory and getting paid in Chevy parts
 
Bassman99 said:
what is a good alternative?
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I'm pretty happy with HiveOS. RaveOS might be a good alternative as well for running your machines. As far as pools go, I'll probably switch over to Monero Ocean soon though because then I can mine ETH, Ravencoin, etc. and get all the payouts in Monero.
 
Andrew_Carr said:
I'm pretty happy with HiveOS. RaveOS might be a good alternative as well for running your machines. As far as pools go, I'll probably switch over to Monero Ocean soon though because then I can mine ETH, Ravencoin, etc. and get all the payouts in Monero.
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Are these easy to setup like Nicehash?
Ill look up Monero
 
Bassman99 said:
Are these easy to setup like Nicehash?
Ill look up Monero
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Yeah, HiveOS takes a little bit to get used to but it's relatively simple. Burn a live USB image of their linux distro to a thumb drive or SSD, boot into it, enter your miner ID and info, and then overclock/setup mining programs, etc. as needed. RaveOS looks pretty similar. I'm kinda upset about how they took Linux, abused the license, and are trying to sell it without providing the source code, but it's definitely useful. You can do a lot of the same stuff with other linux distros as well.
 
I tried using Binance Eth Pool, but seems profits are pure crap and using TeamRedMiner (supposed to be the most efficient one) I am only getting like $3 a day....where as nicehash I can do $5-$10 a day
 
Yeah I saw my wallet getting smaller at the end of the day than he start.
I turned mine off too.
Maybe it will go back up maybe not, but im not gonna stress my card for $5 a day
 
Bassman99 said:
Yeah I saw my wallet getting smaller at the end of the day than he start.
I turned mine off too.
Maybe it will go back up maybe not, but im not gonna stress my card for $5 a day
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That's $150 a month. It seems like nothing, but it's really not that bad.

Your wallet looks lower if you are comparing the USD value because ETH is down as well. It will rebound.

However, if you keep the cards running and ETH goes up, so does your money.
 
Bassman99 said:
Yeah I saw my wallet getting smaller at the end of the day than he start.
I turned mine off too.
Maybe it will go back up maybe not, but im not gonna stress my card for $5 a day
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You arent really stressing your card though.

As long as their temps are good, you are fine. The main thing that dies on most mining cards are the fans on more cheaply made cards.
 
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