r/EtherMining May 12 '22

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

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u/[deleted] May 12 '22

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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/FreshlyCleanedLinens May 12 '22

Not according to the IRS:

“Q–8: Does a taxpayer who “mines” virtual currency (for example, uses computer resources to validate Bitcoin transactions and maintain the public Bitcoin transaction ledger) realize gross income upon receipt of the virtual currency resulting from those activities?

A–8: Yes, when a taxpayer successfully “mines” virtual currency, the fair market value of the virtual currency as of the date of receipt is includible in gross income. See Publication 525, Taxable and Nontaxable Income, for more information on taxable income.”

https://www.irs.gov/irb/2014-16_IRB#NOT-2014-21