Author Topic: Taxes on bitcoin/bitcoin mining  (Read 463 times)

Financial.Velociraptor

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Taxes on bitcoin/bitcoin mining
« on: August 12, 2017, 06:15:05 PM »
Forgiveness if this has been covered before.  Google search for the forum and the topic didn't come up with any relevant hits.

I'm looking into buying a bitcoin cloud mining contract.

It seems that Uncle Sugar considers mined bitcoin to be gross income at the time of acquisition with a basis as of the date of acquisition.  What I can't tell is if mining is considered schedule C activity and requires self employment tax as well.   Schedule D?  Line 21?  I need guidance.

I can already tell recordkeeping is going to get a little hairy.  Anyone mine coin and have experience with the US taxes thereon?

Quote
IRS Notice 2014-21,   When a taxpayer successfully "mines" virtual currency, the fair market value of the virtual currency as of the date of receipt is includible in gross income.
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effigy98

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Re: Taxes on bitcoin/bitcoin mining
« Reply #1 on: August 15, 2017, 02:13:01 PM »
This is probably the most get to the point explanation I can find.
https://www.reddit.com/r/Bitcoin/comments/1uccfz/i_am_a_tax_attorney_here_are_my_answers_to_the/

Financial.Velociraptor

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Re: Taxes on bitcoin/bitcoin mining
« Reply #2 on: August 16, 2017, 07:41:55 AM »
Thanks!
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