How Bitcoin Mining Income Is Taxed: Rewards, Self-Employment Tax and Basis
Mining rewards are ordinary income on receipt at that day’s value. What that means for self-employment tax, your cost basis, and the records you need to keep.
Mining rewards are ordinary income on receipt at that day’s value. What that means for self-employment tax, your cost basis, and the records you need to keep.
Why a year one depreciation loss on mining hardware can be suspended under section 469, the material participation tests, and the basis, at-risk and excess business loss limits behind them.
What an LLC that owns Bitcoin mining hardware can deduct: section 179, bonus depreciation, hosting, and the four limits that decide whether any of it reaches your return this year.
Entity, capital, hardware, facility, deployment and records, in the order that matters. What drives the economics, what to avoid, and how long it actually takes.