Tax Strategy

Tax advantages, depreciation strategies, and LLC benefits for Bitcoin miners.

Short-Term vs Long-Term Capital Gains: Why Holding Your Mined Bitcoin Matters

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Tax Strategy 5 min read Short-Term vs Long-Term Capital Gains: Why Holding Your Mined Bitcoin Matters Most bitcoin miners focus on the mining side of the tax equation – depreciation, deductions, entity structure. But there’s a second tax event that’s just as important: what happens when you sell your mined BTC. Understanding bitcoin capital gains … Read more

The S-Corp Strategy: How Bitcoin Miners Cut Self-Employment Tax by Thousands

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Tax Strategy 5 min read The S-Corp Strategy: How Bitcoin Miners Cut Self-Employment Tax by Thousands If you’re mining bitcoin through a sole proprietorship or standard LLC, you’re probably paying more tax than you need to. Self-employment tax hits every dollar of mining profit at 15.3%, and that adds up fast. The bitcoin mining S-Corp … Read more

How Bitcoin Mining Income Is Taxed: What Every Miner Needs to Know

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Tax Strategy 5 min read How Bitcoin Mining Income Is Taxed: What Every Miner Needs to Know If you’re mining bitcoin – or even just looking into it – you need to understand how bitcoin mining taxes work. The IRS treats crypto as property, not currency and not stock. Mining has its own tax rules, … Read more

The Passive Activity Trap: Why Your Mining Losses Might Not Save You on Taxes

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Tax Strategy 5 min read The Passive Activity Trap: Why Your Mining Losses Might Not Save You on Taxes You set up your bitcoin mining LLC, claimed bonus depreciation on your ASIC hardware, and generated a healthy tax loss in Year 1. You’re expecting that loss to offset your W-2 income and slash your tax … Read more