For example you mined emc2 at $2 bucks last quarter irs counts that as income right away the day it's mined. However emc2 is now .20 cents And your screwed.
I wish the IRS the best of luck trying to enforce that...
To the IRS your a criminal for mining if you don't report your earnings accurately or your hiding your mined coins, According to them you will be faced with a 250k fine and be sent to prison for 5 years for not reporting or hiding your mined earnings of a buck a day for your 1080 ti. LOL
Seriously hire an accountant, its not worth testing the irs, They can audit your 5 years later for your past history.
https://www.irs.gov/newsroom/irs-reminds-taxpayers-to-report-virtual-currency-transactions"taxpayers could be subject to criminal prosecution for failing to properly report the income tax consequences of virtual currency transactions. Criminal charges could include tax evasion and filing a false tax return. Anyone convicted of tax evasion is subject to a prison term of up to five years and a fine of up to $250,000. Anyone convicted of filing a false return is subject to a prison term of up to three years and a fine of up to $250,000."
happy mining folks, Enjoy your pathetic profits or losses and risking on catching your house on fire and be sent to prison.
Ok FUDlord. I filed my taxes last week and paid my taxes on mining profits minus electricity costs and hardware. The IRS does not currently have much in the way of defining how crypto is to be taxed yet. So pay capital gains on your profits and it is done.
Mining is still profitable unless you are like lunobird who either is terrible at it or missed the bus on it and is just salty. Probably just trying to deter noobs to keep difficulty low.