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?
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.