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Wow. Bitcoin is almost $1,500

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brianmanahan

Lifer
Sep 2, 2006
20,389
2,390
126
filing quarterly

I'm not going to go into all the details of who does or does not have to file quarterly, but you can read the following to decide whether it applies to you:

https://quickbooks.intuit.com/r/taxes/pay-quarterly-taxes/

https://www.irs.gov/faqs/estimated-tax/individuals/individuals

(pick your poison)

Basically, if you expect to owe $1k or more from the sale of crypto within a given quarter, then you need to make a quarterly filing on that income, using form 1040-ES when you make a final filing by April 2018.

Also notice the payment schedule!
might also be able to use w4 withholding in your main job instead of filing quarterly. that's what i do for side income.
 

Zeze

Lifer
Mar 4, 2011
10,294
501
126
One thing I will never understand about those who complain about big money problems, is that guess what, you have big money! There's a real easy way to fix big money problems....
The phrase 'Mo' money mo' problems' is actually deeply profound.
 

pete6032

Diamond Member
Dec 3, 2010
4,953
802
126
Coins are stolen when a hacker obtains the private keys of peoples' accounts. The private key is what allows users to "sign" and verify a transaction and send the currency, so if a hacker obtains your private key, he/she can send your coins to any account. When you sign up for an account at an exchange, the cryptocurrency exchange holds your private key for you. Since all accounts are anonymous you can see the account that the coins were transferred to, but you don't know who owns that account.

The best way to protect against this is to transfer your coins off of the exchange to a different account where your private key is stored offline.
 

Sonikku

Lifer
Jun 23, 2005
15,565
4,029
136
Avast keeps moving the excavator of nicehash to the chest, calling it a virus. I keep trying to put in an exclusion for its file path but it keeps doing it anyway.
 

destrekor

Lifer
Nov 18, 2005
28,757
343
126
To be more serious, a lot of AVs have this same flaw, not accepting exclusions and/or taking a shit on anything crypto. They have the right idea but aren't getting it done right. Most cryptomining tools are blocked by AV because in the broader market, miners aren't introduced on a user's computer through their own actions. Yes, a lot of people have some form of legit crypto software that they installed themselves on purpose, but the vast majority do not, and don't even know what one is.
 
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Crono

Lifer
Aug 8, 2001
23,727
1,497
136
Yes to above two posts. Don't use third-party security suites or AV unless you are paying for enterprise-grade services, which usually have accompanying physical hardware, anyway. Running as a limited user, applying all (non-bricky ones anyway... thanks, Intel :p jk) updates, possibly turning off JavaScript if possible/use NoScript, running adblocking (uBlock Origin), and not opening yourself up to attack by visiting shady sites or wantonly installing apps will protect you from most things, and on top of that Windows already has a built-in AV (Defender) that's adequate.

All the free antivirus programs cause more problems than they are worth and integrate poorly into the OS. Just see the latest issues with Meltdown/Spectre patches, revelations of vulnerabilities introduced by AVs, accusations of state-sponsored AVs, etc. If a company is giving away something free, you have to ask what's paying their bills. Sometimes it's a legitimate freemium/upsell model, but if you aren't sure that they aren't spying on you, selling your data to third parties, or working both sides of the malware/AV game...
 
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[DHT]Osiris

Diamond Member
Dec 15, 2015
8,112
3,983
146
Avast keeps moving the excavator of nicehash to the chest, calling it a virus. I keep trying to put in an exclusion for its file path but it keeps doing it anyway.
Quitit. Just stick with Defender. It's good enough for 99.9%, and I haven't seen compelling evidence that any others are good enough for that last .1%.
 

DrMrLordX

Lifer
Apr 27, 2000
16,773
5,750
136
I wish I had that problem.
Main problem is that some crypto owners/traders don't understand that they have the problem. They won't like it when the IRS steps in to inform them.

I hope the IRS "gets it" and deals with these people with kid gloves during the first encounter; neturally, anyone who bucks the system deserves what they get. Some of these crypto traders just don't understand the implications of having a lot o money since they have moved outside of the channels one traditionally uses to get that kind of cash.

might also be able to use w4 withholding in your main job instead of filing quarterly. that's what i do for side income.
Interesting plan. I haven't read up on that, but for those who know, go for it.

All I know is if someone made serious bank on the side, the obvious solution to tax liability is to use a 1040-V (or the online payment system), keep them quarterly payments up to date, don't neglect the 3.8% where applicable, and use 1040-ES come April.

Yep, you're SOL and if I understand correctly, if you mined them and paid income tax on the mined account, you cannot even deduct your losses on your future tax returns just like you can't deduct any other stolen property on your tax returns. Basically you're really SOL.
Ugh. Feels bad for anyone who got hosed in the Parity "hack" since those people didn't even "lose" their money . . . it's stuck in wallets that are permanently inaccessible. Thanks Parity!

To be more serious, a lot of AVs have this same flaw, not accepting exclusions and/or taking a shit on anything crypto. They have the right idea but aren't getting it done right. Most cryptomining tools are blocked by AV because in the broader market, miners aren't introduced on a user's computer through their own actions. Yes, a lot of people have some form of legit crypto software that they installed themselves on purpose, but the vast majority do not, and don't even know what one is.
Quitit. Just stick with Defender. It's good enough for 99.9%, and I haven't seen compelling evidence that any others are good enough for that last .1%.
I know, right? Defender is good enough that I don't even mess with Avast. Maybe 10 years ago, Avast would have been a valid choice. Today? Nah.

I have had Windows Defender detect stuff as coinminer trojans before, but it leaves them alone when I ask it to, and everything is fine.
 

VirtualLarry

No Lifer
Aug 25, 2001
50,055
5,864
126
All I know is if someone made serious bank on the side, the obvious solution to tax liability is to use a 1040-V (or the online payment system), keep them quarterly payments up to date, don't neglect the 3.8% where applicable, and use 1040-ES come April.
Please define "serious bank on the side", at least roughly. I'm looking at $500/mo, will that require quarterly payments?
What if I make payments, and at the end of the year, I'm below income reporting requirements. Do I get it all back?

On disability, my SS tax-reporting sheet usually says, "take this amount you received from us the past year, add additional taxable income of this line, and if it's more than (I think $24,000), then you have to pay taxes on the amount over ($24,000?).

So, even with $500/mo additional taxable income, I may be below the reporting requirement guidelines.
 

DrMrLordX

Lifer
Apr 27, 2000
16,773
5,750
136
In terms of quarterly profits, if you are making $500/month mining, then your tax liability would be at most $594 for any given quarter, and that's assuming you're making enough overall to be in the 2017 39.6% tax bracket.

So no, the mining activity alone will not trigger the requirement for quarterly reporting. Maybe in addition to other non-wage-based income it would, but that's up to you to report or not report that stuff. I'm just looking at mining.

To be liable for the Medicare tax, you would have to make over $200k/year total as an individual filing single. $500/month is only $6k yearly, so unless you're making a ton of money somewhere else, you will not get pushed into the 3.8% zone just from mining.
 

VirtualLarry

No Lifer
Aug 25, 2001
50,055
5,864
126
Nah, I get around $15,000 / yr in SSDI. Maybe a little more now with the 2018 2% COLA.

Yeah, pretty small budget for hardware purchases, huh? The last year or two, I was borrowing from good old Mom. :( Now that I'm doing mining, and have a number of decent Ryzen rigs, and as many GPUs as my PCs will hold, I'm going to be paying her back this year, hopefully substantially.

I've pared back my cell phone ($160/yr), Internet ($9.95/mo, $112/mo for the gigabit FIOS connection, debating on keeping that), the things that are expensive are my car ins. ($200+/mo), and rent (~$400/mo). But thank the Lord Above that I can manage on that income. Mining is a nice little bonus, even though it rolls in really slowly. Even if I have to pay taxes on it. Which, given my low income otherwise, I wonder if I maybe don't have to?

Edit: I eat a lot of Ramen and McD's dollar value menu stuff.


My Asus AC68R running Shibby Tomato 140, WITHOUT CTF enabled, on a FIOS Gigabit connection.

I could enable CTF, and get a real gigabit connection, but I've been lazy, and, well, it feels fast enough already. :p

Edit: Ok, I went and enabled CTF, for science.

Less than perfect, but I've got the FIOS Quantum router in front of my router, and my PC is busy mining.
That's in the ball-park, anyways.
 
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Red Squirrel

No Lifer
May 24, 2003
58,056
8,032
126
www.uovalor.com
I've been toying with buying property and going big. Huge initial capital though and very high risk, so I would want a secondary business for that property in case mining flops. I imagine ASICs will start showing up on Ebay though because of China's new ruling. In my case I'd want to look at solar/wind though, I'm in Ontario and our hydro rates are ridiculous. Still profitable, but would be even more profitable on free electricity. I would like to go big with GPU mining alt coins like Ethereum but you can't buy GPUs in large quantities anymore and they are getting more and more expensive.
 

Yakk

Golden Member
May 28, 2016
1,574
272
81
I was reading a first batch Chinese mining equipment is already enroute to Canada.

Bitmain also reportedly placed a massive order at TSMC second only to Apple so all that equipment is going to have to go somewhere also.

And more Canadian mining in mainstream news, looks like it's becoming big business, really fast! Canadians can thank China I guess, hydropower power FTW.

globalnews.ca/news/3978151/canada-bitcoin-mining-prime-destination/
 

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