Quote from: Xazax310 on November 22, 2018, 12:24:14 PM

Quote from: lunobird on November 22, 2018, 04:58:20 AM

Anybody mining in the USA all of 2018 is at a real total loss on accounting. Most miners do not sell right away to fiat so you owe the IRS lots of money if you mined and hodled. Since the. Value of the coins dropped 6x on mining that means your 6x short on giving the irs their cut. Irs wants the value of the coins you mined that day. Your options is to buy 6x more coins to pay off the IRS or sell all your mined coins at a loss and clear out your accounting before end of year.

Congrats 2018 mining losers. You screwed yourself over

Actually You count the day it was "mined" versus when you cashed it out. This would then count as A LOSS. Therefor taxes would be low-none. If you never cashed it out, then it's not a taxable event.(They also have no way of telling how much ETH/BTC/ETC your holding). Crypto is only a taxable event when you cash out for FIAT because money for that new lambo had to come from somewhere and I doubt any of us are drug dealers Roll Eyes

I've personally downsized my farm of 170~ GPUs completely selling off all my AMD gpus and sticking to Nvidia. Contrary to what everyone believes I sold them all within a month. Gamers want cheap RX 580s I sold them for 120(4GB) to 165 (8GB) on Fleabay.

I checked my rates and Mining is still profitable for me @ .10Kw Even ETH(barely) but I'm mining RVN and going to try SUQA. It annoys me that SRQL is so far behind in Acorns because they're suppose to reduce power as well.

NOooooo!!! That is totally incorrect. Please do not spread inaccurate information messing up peoples accounting.

https://ttlc.intuit.com/questions/4138638-how-do-i-report-cryptocurrency-mining-income

from turbo tax USA laws
"When you mine the coins, you have income on the day the coin is "created" in your account at that day's exchange value."

The 2nd red text I highlighted is also incorrect. If you trade an alt coin for another alt coin that's a taxable event for 2018. You can't use like kind exchange anymore, the irs made it only specific to real estate and not crypto.

Your first sentence is correct but is another separate taxable event for the day you mined and the day you cash out.

Also remember when you sell your equipment that's taxable. IRS wants that also to offset the equipment deductions they gave you.

So what does this all mean. If you mined 1 zcash at $400 dollars that's all taxable income. If the value drops to what it is now $78. You just lost over 5x value. You still owe taxable income on that $400 dollars so if your taxable income rate is at 25 percent, that means you owe the IRS $100 dollars for their cut but the value of your 1 zcash you mined early on the year is now only worth $78. Congrats you made a dumb move by deciding to mine for all of 2018 in the red.

Your only way to get out of this is to sell some of your mined coins at a loss at full capitulation prices to REALIZE the lost. If your in the usa and you mined for all of 2018 and hodl then your at a BIG LOSS when doing your mining taxes!

Mining not all fun and games. There's a lot of record book keeping and tax accounting involved and risk