Claiming Crypto Mining Rig as Business Expense - eBay Suspension & PayPal Limited Forums
eBay Suspension & PayPal Limited Forums  
Join Today
Register Subscribe
     

Registration is fast, simple and absolutely free so please, join our community today!


Go Back   Home > General Discussions (Off-Topic) > Everything Else

Everything Else For off-topic conversation. The rules are relaxed in here, but play nice!

Reply
 
Thread Tools
  #1  
Old 04-14-2019
Sunspot144's Avatar
Senior Member
 
Join Date: Apr 2018
Posts: 1,445
Thanks: 322
Thanked 267 Times in 218 Posts
Activity: 70%
Longevity: 9%
iTrader: (0)
Default 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?
Reply With Quote
The complete step-by-step guide to get back to selling today!

  #2  
Old 04-14-2019
Senior Member
 
Join Date: Jul 2014
Posts: 888
Thanks: 136
Thanked 295 Times in 197 Posts
Activity: 15%
Longevity: 40%
iTrader: (0)
Default 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.
Reply With Quote
The Following User Says Thank You to dan_ebay For This Useful Post:
Sunspot144 (04-14-2019)
  #3  
Old 04-14-2019
Sunspot144's Avatar
Senior Member
Threadstarter  
 
Join Date: Apr 2018
Posts: 1,445
Thanks: 322
Thanked 267 Times in 218 Posts
Activity: 70%
Longevity: 9%
iTrader: (0)
Default Re: Claiming Crypto Mining Rig as Business Expense

Quote:
Originally Posted by dan_ebay View Post
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.
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"
Reply With Quote
  #4  
Old 04-14-2019
bjammin's Avatar
Executive [VIP]
 
Join Date: May 2013
Posts: 2,152
Thanks: 391
Thanked 707 Times in 443 Posts
Activity: 22%
Longevity: 49%
iTrader: (75)
Default 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
Reply With Quote
  #5  
Old 04-14-2019
Sunspot144's Avatar
Senior Member
Threadstarter  
 
Join Date: Apr 2018
Posts: 1,445
Thanks: 322
Thanked 267 Times in 218 Posts
Activity: 70%
Longevity: 9%
iTrader: (0)
Default Re: Claiming Crypto Mining Rig as Business Expense

Quote:
Originally Posted by bjammin View Post
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
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.
Reply With Quote
  #6  
Old 04-14-2019
rsot's Avatar
Executive [VIP]
 
Join Date: Dec 2009
Posts: 57,376
Thanks: 4,564
Thanked 6,980 Times in 6,360 Posts
Activity: 100%
Longevity: 76%
iTrader: (7)
Default Re: Claiming Crypto Mining Rig as Business Expense

Quote:
Originally Posted by Sunspot144 View Post
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.
You have a registered business though?
Reply With Quote
  #7  
Old 04-14-2019
Sunspot144's Avatar
Senior Member
Threadstarter  
 
Join Date: Apr 2018
Posts: 1,445
Thanks: 322
Thanked 267 Times in 218 Posts
Activity: 70%
Longevity: 9%
iTrader: (0)
Default Re: Claiming Crypto Mining Rig as Business Expense

Quote:
Originally Posted by rsot View Post
You have a registered business though?
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.

Last edited by Sunspot144; 04-14-2019 at 11:13 PM.
Reply With Quote
  #8  
Old 04-16-2019
rsot's Avatar
Executive [VIP]
 
Join Date: Dec 2009
Posts: 57,376
Thanks: 4,564
Thanked 6,980 Times in 6,360 Posts
Activity: 100%
Longevity: 76%
iTrader: (7)
Default Re: Claiming Crypto Mining Rig as Business Expense

Quote:
Originally Posted by Sunspot144 View Post
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.
Got it Sunspot144
Reply With Quote
Reply



Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Mining Crypto 700TH Noor Shafaq CryptoCurrency 5 09-09-2018 02:07 PM
Gift cards and tax filing expense (cost of goods) nakamuru Everything Else 1 05-06-2018 10:19 PM
Anyone into Mining? xenix CryptoCurrency 39 10-19-2017 08:13 AM
Crypto Mining Rig empirestate CryptoCurrency 21 08-24-2017 05:34 PM


Aspkin Group

All times are GMT -5. The time now is 04:33 AM.


Stop the guessing games and learn how you can quickly and easily get back on eBay today!
Read the best selling step-by-step eBay Suspension guide eBay Stealth!
Amazon Suspension? Read Amazon Ghost to get back on Amazon!
vBulletin® Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Ad Management by RedTyger
no new posts