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Cryptocoin Mining?

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S***

The profitability was going down already & with this news expect a tanking in price of all crypto currencies.

Unless & I hope someone comes up with a workaround for this.
 
Virge_ said:
This is actually fantastic, I can mine a coin with an inflated value and if the value tanks I can claim the loss in excess of my electricity cost on my taxes. TIME TO EXPERIMENT WITH MORE COINS!
Click to expand...

Hah! I wonder if I can write off my losses in mt.gox going belly up...
 
I quit mining a while ago. I used about $0.20 of electricity (cheap rates) to mine 2055 doge. If doge ever hits $1 or even $0.50 I'll have a nice computer rebuild and be happy. Otherwise; no loss, no gain.
If profitability goes up I may start mining again. Maybe.
 
I'm surprised no one has mentioned this yet. I don't think the IRS intends everyone to have to track the daily exchange rate. I think they intend to kill the use of crypto with a "thousand cuts". The harder they make it to use, the more that will give it up.

It is realistically impossible for miners to do what they are asking us to do. They know that...
 
We've got the Oracle of Omaha calling BTC an illusion, exchanges dropping like flies, an arrogant and viscious .gov and it's goon lackeys conflating and undermining as they can the currency,... and BTC is still doing ok if not exceptionally well vs where it was 12 months ago.

Im not sure what it will take to break BTC, but perhaps it starting to solidify as something that is for real and will be around for the simple reason it's still here after having run a clear gauntlet.

I think the IRS is just trying to collect revenue so they had to address crypto in some manner, calling it property is perhaps just easier than dealing with it as a currency and if the main goal is revenue you'll take what you can get.
 
No, by calling it property and issuing idiotic guidelines they are making it extremely difficult, if not impossible to correctly report it for tax purposes.

Especially mined coins. I haven't seen anywhere yet how you're supposed to calculate basis for those. I've got a paper trail a mile long for equipment costs and power costs though...
 
taserbro said:
Hah! I wonder if I can write off my losses in mt.gox going belly up...
Click to expand...

I am pretty sure you can for 2014 (ie. next years not this years) taxes since the bankruptcy happened in 2014. I'm planning on doing it. I was going to treat it similar to what I do with capital gains losses. Basically subtract it from my overall gains for this year.

I'm still trying to figure out how I'm going to even factor in bitcoins into my 2013 taxes. It's easy to calculate what I've cashed out and used to buy things and it's ridiculously difficult for me to figure out my daily basis for all the microtransactions from mining... although I was thinking that I could write a Perl script to pull the data on daily prices and then pull in my wallet deposits and then somehow cross-check them to get my basis and go from there.

And, I'm sure there are people who would say "it's bitcoins, ignore the taxes" but I've paid all of my legal taxes over the years and I fully intend to continue doing so - I pay as little as I can by taking advantage of any credits and deductions that I can, but I pay what I legally owe because I try to live my life as an honest person... but in this case my problem is that I'm not sure how to do it.
 
pm said:
And, I'm sure there are people who would say "it's bitcoins, ignore the taxes" but I've paid all of my legal taxes over the years and I fully intend to continue doing so - I pay as little as I can by taking advantage of any credits and deductions that I can, but I pay what I legally owe because I try to live my life as an honest person... but in this case my problem is that I'm not sure how to do it.
Click to expand...

It's my belief this is their whole point. Lets "legitimize" Bitcoins by telling the public they can trade in them. But.... Lets make it so goddamn hard/confusing that no one will want to fool with it.
 
frowertr said:
It's my belief this is their whole point. Lets "legitimize" Bitcoins by telling the public they can trade in them. But.... Lets make it so goddamn hard/confusing that no one will want to fool with it.
Click to expand...

Pretty much the point I was getting at as well. I kept a ridiculous amount of information for basis type calculations but the problem is I have no guidance on how to do it for mined BTC.
 
geokilla said:
My BTC is stuck at Cryptorush. Been trying to withdraw since 10am. GG! There goes $10.
Click to expand...

Dunno how many times this can be said, but never, under any circumstances, ever, leave currency in an Exchange. If you do, consider it lost. Trade your shit and get it on a wallet immediately or you only have yourself to blame.

Exchange's are not banks. Treating them like one is asking to lose your crypto.
 
Virge_ said:
Dunno how many times this can be said, but never, under any circumstances, ever, leave currency in an Exchange. If you do, consider it lost. Trade your shit and get it on a wallet immediately or you only have yourself to blame.

Exchange's are not banks. Treating them like one is asking to lose your crypto.
Click to expand...
I was trading and selling TenFivecoins. If I sent them to my wallet every time I traded, I'd have nothing due to the fees that Cryptorush charges.
 
pm said:
I am pretty sure you can for 2014 (ie. next years not this years) taxes since the bankruptcy happened in 2014. I'm planning on doing it. I was going to treat it similar to what I do with capital gains losses. Basically subtract it from my overall gains for this year.

I'm still trying to figure out how I'm going to even factor in bitcoins into my 2013 taxes. It's easy to calculate what I've cashed out and used to buy things and it's ridiculously difficult for me to figure out my daily basis for all the microtransactions from mining... although I was thinking that I could write a Perl script to pull the data on daily prices and then pull in my wallet deposits and then somehow cross-check them to get my basis and go from there.

And, I'm sure there are people who would say "it's bitcoins, ignore the taxes" but I've paid all of my legal taxes over the years and I fully intend to continue doing so - I pay as little as I can by taking advantage of any credits and deductions that I can, but I pay what I legally owe because I try to live my life as an honest person... but in this case my problem is that I'm not sure how to do it.
Click to expand...

depends on how you want to treat them, I think you are legally fine to only pay taxes on what you cashed out, much like some investment funds are taxed
 
geokilla said:
My BTC is stuck at Cryptorush. Been trying to withdraw since 10am. GG! There goes $10.
Click to expand...

Sorry for your loss but you can't say I didn't warn you guys about cryptorush 20 days ago...
If it makes you feel any better, 10 bucks is an order of magnitude lower than what they took from me.
 
I've known about Cryptorush's fault for a while.

Our mining pool owner actually ran the pool with him, the co-owner of CR, who goes by the handle Devienttwo on IRC, and apparently he got money hungry from CR.
 
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