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
A corporation pays tax on its profits, not income as it goes as does an individual, therefore if the corp's money is all spent out at the end of the tax year, there is not corp tax due.
Now depending on how the money has been exrtracted from the corp there will be at least some tax due but there are ways to minimise even that.
Glad you are learning about legal tax avoidance which is not nearly the same thing as tax evasion.
Tax avoidance by following the rules is 1000% legal.
Best wishes and thank you for you kind comments.
My $.02.