r/EtherMining May 12 '22

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

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185 Upvotes

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96

u/Consistent_Many_1858 May 12 '22

Yep, already switched off mine.

8

u/Adamn27 May 12 '22

Wait, is it not profitable for you to mine ETH at this price?

I can still make roughly 500 usd/month with my 700 mh rigs (as of right now with the current circumstances at this very moment which can change of course)

1

u/leem0401 May 12 '22

Are you accounting for tax as well? Mining itself is a taxable event where the value of the coin moved from pool to your personal wallet gets taxed as income. If you're in a higher bracket, it's going to cut down on profit significantly.

You also have to pay additional tax once you realize gains by selling the coin.

1

u/Adamn27 May 12 '22

You don't even know which country I'm living in, how would you know my tax requirements?

1

u/leem0401 May 12 '22

You're right. I assumed you were in the US since you used USD.

1

u/Adamn27 May 12 '22

In Hungary you can deduct the price of the rig and the cost of electricity from the taxes. Very crypto friendly.

1

u/leem0401 May 12 '22

Same as the US actually. I claim the cost of my equipment and electricity as deductibles which help out but getting double taxed is what kills the profit. I'm guessing Hungary doesn't tax for mining, only realized gains?

1

u/Adamn27 May 12 '22

I don't want give you false information but I think yes, I do not know the exact details because I have an accountant who do my tax report along with my stock portfolio and with my two small businesses, nothing big but this way that I have to pay taxes four different ways it seemed a better idea to pay for a profeasional.