Re: Bitcoin, Virtual and Crypto Currencies, Mining Pools, and the IRS
According to the ruling, solo miners could face as much as a 40% tax penalty, depending on thier tax bracket.
For sure the Self Emlployment tax of about 13% and Medicare Tax of about 3% will be due.
Corporations do not face this however.
My %.02.
For sure the Self Emlployment tax of about 13% and Medicare Tax of about 3% will be due.
Corporations do not face this however.
My %.02.
Dutchman, Nice to see you again. I am really missing something here. Why would income tax from coins gained from solo mining be any higher than income tax from coins from a pool. Isnt it all income (cost basis calculated) from the time it was received all the same?
BTW I had a hefty tax bill for 13. I did not become a corporation until mid Dec. Made allot of mistakes last year that I paid dearly for but understand the whole thing much better now..
Best Regards,
M