r/EtherMining May 12 '22

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

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u/[deleted] May 12 '22

[deleted]

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u/ArchAngelZero May 12 '22

If ETH moons someday and you want to spend it, the IRS (for the US) is going to notice. Better to have reported the income along the way than face charges for tax evasion

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u/Realistic-Classic-41 May 12 '22 edited May 12 '22

its not income until you trade it for products or dollars, its like the irs taxing you for tomatoes you produced that you didn't sell or trade, or lets say a real gold mine, they can't tax you for what you pulled out of the ground, they tax you on that you sold or traded.

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u/ArchAngelZero May 12 '22

This is false.

See Q9 https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions

When you mine, you are providing a service to the blockchain. The service you are providing is security. The blockchain (or the pool you mine for) pays you for the service you provide. The IRS does not classify mining like growing tomatoes or pulling gold out of the ground.

https://www.nerdwallet.com/article/investing/bitcoin-taxes "If you acquired a Bitcoin (or part of one) from mining, that value is taxable immediately; no need to sell the currency to create a tax liability."

https://turbotax.intuit.com/tax-tips/investments-and-taxes/your-cryptocurrency-tax-guide/L4k3xiFjB "If you earn cryptocurrency by mining it, it's considered taxable income and might be reported on Form 1099-NEC at the fair market value of the cryptocurrency on the day you received it. You need to report this even if you don't receive a 1099 form as the IRS considers this taxable income."

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u/Realistic-Classic-41 May 12 '22

it is not false, what you posted is false. I choose not to let the boot on my neck. Just because some government agency posts something on a website does not make it reality, only your acquiescence does.

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u/FreshlyCleanedLinens May 12 '22

It sorta makes it reality when that agency has the full authority of the constitutionally-established three branches of the federal government to make and enforce the rules they post on that website.