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Claiming Crypto Mining Rig as Business Expense
 

Any wages over $400 are taxable by IRS.

Crypto mining is no exception.

Curious what your opinions are on claiming mining rigs (cost me about 2.5k to get setup and mine) as a business expense.

Where the lines blur is if this is a hobby or a business.

And even if it does qualify as a hobby, can you still write off the expense of a mining rig against your taxes?

Re: Claiming Crypto Mining Rig as Business Expense
 

You could probably get away with it being a hobby or business if it's fairly small scale. Expect you'll be better off with it being a business though, pay a higher tax rate but will be able to claim the rigs as an expense.

Hassle if you're holding the coins though, income tax when they're mined and capital gains tax when you sell.

Re: Claiming Crypto Mining Rig as Business Expense
 

Werd, yea, will do. Discovered it can be considered a business according to IRS factors

https://www.irs.gov/faqs/small-busin...ncome-expenses

Otherwise "taxpayers can only deduct hobby expenses up to the amount of hobby income" :ballchain:

Re: Claiming Crypto Mining Rig as Business Expense
 

I think hobbies have a cap on how much you can claim. Why not claim it as a business expense? It seems to be a significant start up expense

Re: Claiming Crypto Mining Rig as Business Expense
 

Figure I'll do it. It's lowered taxes by ~$1k

I think now if the rig is sold any profit or loss on that and capital gain on crypto tax apply for 2019.

Re: Claiming Crypto Mining Rig as Business Expense
 

You have a registered business though?

Re: Claiming Crypto Mining Rig as Business Expense
 

Apparently if you engage in an activity that also makes money and you operate it like you would a business - ie to turn a profit - it's considered now a business.

Dont need a business name though. Crypto mining and day trading are a lot alike. I just learned you dont need to include your license #, but it's for fraud prevention purposes --> faster processing.

Re: Claiming Crypto Mining Rig as Business Expense
 

Got it Sunspot144 :thumb: