Guys, taxes are very tricky. Please please please talk with a tax specialist. But Ill put it like this: anything conducive to mining is an expense if youre paying for it. (Rent, internet connection, electricity, etc) Remember that your equipment will also be depreciating depending on its useful life and its salvage value. You subtract all of that from your profits.
Let me give you a situation that just happened to me:
Been mining for the last two months.
Proceeds at prices when received $3,000+
Sale price when converted to USD $2,100
(Because prices are down comparatively)
So I listed $3000+ in revenues earned
Depreciating ran $476 a month
Loss on capital sale ran $900 (when converting to USD)
Electric ran $150 a month
Rent at my office space ran $550
So I had 3252 in EXPENSES on 3000 in REVENUE
Technically Im at an OPERATING LOSS OF $252
So I dont have to pay taxes on any of that
But my cash USD after paying rent and electric is $700
And I didnt pay anything at all in taxes
Had prices went up, Id actually PAY taxes but be a lot more profitable
Thankfully I dont now have to pay taxes on that money