Quote from: WickedPigeon on February 20, 2018, 03:49:31 AM

Quote from: undersun1 on February 18, 2018, 08:14:29 PM

Quote from: QuadraQ on February 17, 2018, 07:24:36 PM

Mining is one of the EASIER things to keep track of using cointracking.info. Based on the "Date" you enter, CT will calculate the price on the DAY YOU MINED THE COIN, effectively keeping track of your cost/price basis (when you do sell, you will have capital gains) AND keeping track of your mining profits which you will report as self employment income (Schedule C) in the year you mined the coins.

I do some of the same, but I lean on Excel a bit more to check my entries against the import file.

You don't have to file this as a Sch C. (I borrowed this from Turbo Tax Forum)

When you mine the coins, you have income on the day the coin is "created" in your account at that day's exchange value. You can report the income as a hobby or as self-employment. If you report as a hobby, you include the value of the coins as "other income" on line 21 of form 1040. Your ability to deduct any expenses is limited -- expenses are itemized deductions subject to the 2% rule.

If you report as self-employment income (you are doing "work" with the intent of earning a profit) then you report the income on schedule C. You can fully deduct your expenses (if you can prove them) (see later). The net profit is subject to income tax and self-employment tax.

So I file the income as Hobby Income as I net out better than filing a sch C.

Yes, but if you make TOO much mining, the government is not going to buy that this is just a hobby. I don't know what that figure would be, but probably approaching $10k it would no longer be considered a hobby??