How do taxes work for bitcoin mining?
2021-06-01 07:54:00 UTC
Do I have to pay tax for bitcoin mining?
Say I setup a mining rig, this mining rig uses X dollars worth of energy to mine Y dollars worth of bitcoin. Now as soon as I mine these I sell Y dollars worth of bitcoin to pay for my electricity.
So in pure income tax sense, I earned Y dollars. But actually I only earned Y-X dollars, where Y can be smaller or bigger than X. So do I pay income tax on Y-X? How would that work?
It would be nice if the answer is in context of Indian taxation laws.
Created1301d
1301dReplies
6
2021-06-27 15:46:47 UTC
<p>You pay taxes when you cash out your bitcoin.</p>
2021-06-27 22:57:42 UTC
<p>different from country to country. in germany you'd have to get a license to count as a small company. The cost of miners could then be substracted from income tax you have to pay on gains.</p>
2021-06-27 22:16:28 UTC
<p>The best thing is to ask your tax accountant because taxes are treated differently in each country.</p>
2021-10-10 17:54:59 UTC
<p><span style="background-color: rgb(255, 255, 255); color: rgb(77, 81, 86);">Yes, bitcoin and other crypto mining are </span><strong style="color: rgb(77, 81, 86);">taxed as regular income</strong><span style="color: rgb(77, 81, 86); background-color: rgb(255, 255, 255);">. A taxable event is triggered when earned cryptocurrency is deposited into your wallet. This means you will owe crypto mining taxes on its value at the time it is earned, regardless of any gains or losses to its value during the rest of the tax year</span></p>
2021-12-21 05:03:37 UTC
<p><u>if you have crypto currency either you spend it or sell it if it's value increases based on how long you held it you own capital gains tax on profit</u></p>
2022-01-16 08:46:32 UTC
<p><span style="background-color: rgb(255, 255, 255); color: rgb(77, 81, 86);">If you earn cryptocurrency by mining it, or receive it as a promotion or as payment for goods or services, it counts as part of your regular taxable income. You owe tax on the entire fair market value of the crypto on the day you received it, </span><strong style="color: rgb(77, 81, 86);">at your regular income tax rate</strong><span style="color: rgb(77, 81, 86); background-color: rgb(255, 255, 255);">.</span></p>
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