Quote from: Sector7G on March 27, 2014, 12:55:10 AM

Electricity and internet service are necessary to mine Bitcoin. So I wonder if I can deduct them. For that matter, I wonder if I can deduct the cost of hardware too.

You may have to deduct a percentage of the amount used for the business, which will be difficult since your electric bill is for every appliance in your home. But if you come up with a reasonable calculation, you'll be fine; you could probably apply that same percentage to the internet bill as well. The hardware would be pretty easy to calculate: mining hours divided by total hours of use.