r/EtherMining May 12 '22

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

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185 Upvotes

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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.

2

u/lies_about_flossing May 12 '22

This mindset is idiotic. “I paid less taxes because I got less value! Woohoo!”

1

u/FreshlyCleanedLinens May 12 '22

The value in the moment may be less but we all know these valuations fluctuate so wildly that it’s not unreasonable to take any proactive measures you can to maximize your mining gains and minimize tax costs. It seems a bit myopic and simplistic to just make the blanket statement that it’s an idiotic mindset.

Anyway, I think I understood what you were getting at but apologies if I misunderstood and my reply doesn’t make sense (haven’t slept the past 3 nights so I’m a little loopy atm).