The Money Mustache Community
Learning, Sharing, and Teaching => Taxes => Topic started by: Financial.Velociraptor on August 12, 2017, 06:15:05 PM
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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.
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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/
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Thanks!