Quote from: betajuice on April 05, 2022, 06:10:15 PM

by the way, mind sharing how to avoid those US taxes?

Absolutely. It's not very complicated.

Sales tax on hardware: Get a reseller certificate. Avoid sales tax when buying the equipment as long as you sell the equipment by the end of the year, or the end of next year if it's already September/October. However, if your timing is off, you might owe sales tax eventually. But it's better than paying the tax upfront, because you've already bought more miners and hopefully made returns off them. The amount of that tax has been diluted by inflation anyway.

Sales tax on electricity: This is much harder and you need to be larger-scale, but some states (like Texas) have exemptions to the 6.25% sales tax for datacenters and other companies like that. Oklahoma has a similar bill coming up.

Federal income tax:[/b/] Depreciate the equipment (ASICs, GPUs, electrical, ventilation, etc.) with Section 179 in the first year. If you sell equipment, roll the proceeds into new equipment before the end of the year. As long as you re-invest profit into capital equipment, you'll never owe income tax. Just be careful with the timing.

State income tax: Same as the above.

FICA[b/]: This is the worst one of all of them. File taxes as a 'Subchapter S' LLC, and pay yourself with distributions. You will save up to 15.3%. There are more details about this method on the web.

Bonus deductions: Set up your home address as the official business address. Now, every trip you make to/from the warehouse is deductible. Also, run a few miners in the garage and a bedroom, then deduct 20-30% of the rent as a business cost. Keep track of power usage so you can deduct that too.

With mining, you don't need to cheat/lie/hide in order to pay zero in tax! What's the point of cheating if you pay 0 anyway.