irs is eager to collect tax on mining profit which is understandable and fair as stock traders to pay a hefty sum. But how about loss and business expenses?
You buy a very expense gpu at 800$ and then you havent managed to cover your purchase cost at the end of year then you got taxed, can you use it as an business expense?
I am thinking to go sole proprietar on this one.
incorporate yourself. then you will be taxed on profit (revenue minus expenses)
now you can expense your mining equipment, power, rent for storage of your equipment, etc. might want to consult an accountant to see what you are allowed and not allowed to expense.