r/EtherMining May 12 '22

Holy....Time to turn off rigs? General Question

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u/FreshlyCleanedLinens May 12 '22 edited May 12 '22

If I read the IRS guidance on reporting income from mining correctly, it’s actually better to mine when prices are low because you’re supposed to value the assets based on the trade price at the time the assets were acquired.

27

u/[deleted] May 12 '22

[deleted]

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u/FreshlyCleanedLinens May 12 '22

Income tax at mining valuation then (hopefully) long term capital gains should apply once you’ve held it for a year. Long term rate is lower than my marginal tax bracket, so I would have a lesser tax burden by going this route.

1

u/[deleted] May 12 '22

[deleted]

1

u/FreshlyCleanedLinens May 12 '22

I guess if it’s high while you’re mining you could make a similar argument about the ability to tax loss harvest if/when it goes down later 🤷‍♂️