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4621956 No.4621956 [Reply] [Original]

How is crypto taxed if you mined it? I've read about capital gains, but that doesn't apply if you mine it does it? Wondering cause I mined a shit ton of VTC back in the day and sat on it... starting to think I might have to worry about taxes if the price keeps going up. Honestly thought I might only make a few hundred bucks so the IRS wouldn't care, but I'm well past that now. Does it even matter how you received the coins in the first place, or only how you cash them out?

>> No.4622054

>>4621956

Your gains will be everything minus electricity

>> No.4622179

>>4622054
Ahh, I thought it would be taxed differently since I received them as payment for the mining services I rendered? Or does that not matter if you sell them? If I have to claim it as income and capital gains then screw that.

>> No.4622273

>>4622179
Absolutely not worth letting anyone know. Siphon out the money slowly.

>> No.4622315

>>4622179
Here, i'll help - Vaz2Sk9W6pb6w3pEDQrmdLBXfJ2PsHQBtG

>> No.4622356

>>4621956
Assume your basis is whatever the price it was on the day you mined it. If you want you can try subtract electricity costs like >>4622054 suggests, although you'll have to jump through extra hoops and it might not be worth the effort.

Always remember that income is income from whatever source derived. If you were walking down the street and found a hundred dollar bill lying on the sidewalk you would have income.

>> No.4622583

>>4622273
Oh well, guess I'm not running to the lambo dealer anytime soon then. I don't mind paying some taxes, but uncle Sam rapes me enough as it is. I'm just a poor crypto farmer trying to make it in this world.

>>4622356
Right, but capital gains is around 15% normally, and my state doesn't charge income tax. So if it's considered income then I only have to pay federal tax and I'm fine with that

>> No.4622726

>>4622583
Yes it is taxed as capital gains incomes (this is as opposed to ordinary income). The term income means income, sorry if it's confusing but that's how the IRC defines it. Check your state laws to determine if they also tax you on capital gains.