Re: [850 TH] Slush's Pool (mining.bitcoin.cz); TX FEES + VarDiff
Been mining since Feb. 9th. Three of my 6 mining rigs have already paid for themselves, another will have paid for itself as soon as I sell the BTCs in my wallet (waiting for a slightly higher price) or can spend that disposable income that I did not have before on something else. Buying and selling BTC means staying glued to the computer all day and is too time consuming. If I wanted to day trade I would day trade stocks. As it is, I sit on my butt minting money or go do something else that is fun or interesting and mint money at the same time.
I get to write off the cost of the miners. They, like all capital equipment, are on a depreciation schedule so the price I paid for them does not stay fixed over the course of time. The calculators I have seen do not seem to account for this and that screws up the ROI formulas. I get to write off some portion of my home office, electricity costs, computer hardware that I use for monitoring or mining, and anything else a creative tax accountant can find. Do the mining calculators account for any of that? Not that I can tell. Sure, I have to pay income tax, so what, it is INCOME and so far it looks pretty good that I will have more income than outgo even if I account for the cost of the miners for ROI. My miners will keep making new money as long as running them does not exceed the cost of the electricity I use and the price of BTC does not fall too low. That too appears to be a long way from happening.
I get to write off the cost of the miners. They, like all capital equipment, are on a depreciation schedule so the price I paid for them does not stay fixed over the course of time. The calculators I have seen do not seem to account for this and that screws up the ROI formulas. I get to write off some portion of my home office, electricity costs, computer hardware that I use for monitoring or mining, and anything else a creative tax accountant can find. Do the mining calculators account for any of that? Not that I can tell. Sure, I have to pay income tax, so what, it is INCOME and so far it looks pretty good that I will have more income than outgo even if I account for the cost of the miners for ROI. My miners will keep making new money as long as running them does not exceed the cost of the electricity I use and the price of BTC does not fall too low. That too appears to be a long way from happening.
Writing off the cost of equipment doesn't change the ROI. If your equipment+expenses to mine $4,500 in BTC was $5,000, you still lost money. Writing off expenses doesn't put money back in your pocket.
yeah it does get me back to "just the equipment" you will always likely 'eat that" may recoup the rest of this
silliness under current IRS rules..my CPA lady basically said "Congradulatoins you are now officially a 'Farmer"
anyway can get some back....if btc goes the route of beanie babies..with the whole home office/equip etc IRS stuff...
which in the USA with IRS screwed likely to be overruled rules is something (a vain hope of btc price rising someday)
as screwed as thought I was hey its something...myself I showed 16k profit....my taxes on gross would have been 4K...and if I sold the coin before 1yr and 1day (ie property) I'm speculating its 43% capital gains if i wait more then 1yr 1 day it is 20% on gains...and of course mining now in the USA you have to have your 25% gross income added ..ie the above 4k...so we are so screwed..of course now with IRS rules here and China I now am more clear on why BTC is 450 bucks or so...ie everyone HAS TO HOLD or at least I do
If you are a large miner operation in the USA and sell BTC to USD daily you get around these capital gains problems....
anyway breaks because of new business etc..showed a profit even and equip taken off etc I owed 550 bucks
I'll take that and run.....with it (IRS scares the crap out of me) and I'm also depreciating the equip i think it is 5yrs in future
lastly ....I was stupid (I admit it) got a Titan (no refunds) (sigh boneheaded likely) well w/o the Titan equip this year I would have owed another 2.2k for taxes (total like 2.75k or so)....so in the feeble excuse of my mind..the Titan only cost me what 8k or so? (I know grasping at straws)
note: if you START a new business the first year you get lots and lots of leeway from IRS...I guess that make sense the IRS wants a business to succeed so they can get 25% off gross income from years of service in the future
but yeah original investment equip etc is prob as low as you can go assuming you could? write off as home business/eguip/etc and everything else...
er also capital losses are not limited to 3k a year personal...the CPA lady says if everything tanks I can write ALL OF IT OFF...
again in the hole but a lot shallower then I thought
imho this is what the CPA lady set up
but yeah still at a loss likely....
Searing