Cryptocurrency and Virtual Currency Accounting
Real Estate and Construction Accounting
Hey Saim, can mining impact crypto taxation? If yes then how should I be tracking it?
First, you need to connect your wallet or ledger to a coin tracking software so that everything is organized. You need to record all income and keep track of your capital gains windows.
When it comes to tax time, you need to know how to write off the hardware you bought using tools provided by IRS. Miners who are not incorporated will end up paying self-employment taxes on all their profits and by having the correct entity structure.
Even with mining it can be a case-by-case basis to determine the best strategy, so I’d recommend at least consulting with a cryptocurrency accountant.
© Saim Akif, 2021