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Taxes can't make you lose money. You're taxes are a percent of the profit. That's how it works. You can't be forced into unprofitability because of taxes, but y
by hattmall 4y ago
Taxes can't make you lose money. You're taxes are a percent of the profit. That's how it works. You can't be forced into unprofitability because of taxes, but your profits will decrease by whatever percentage of profit your tax rate is.
- blobbers 4y agoThey don’t factor in the electricity you pay for to get the coin. So when you get your tax bill for $20 of btc, and you paid $15 in electricity to get it, you still owe federal and state taxes on the $20, not the $5. If you set it up as a business you might be able to write off electricity. See: https://www.bitcointaxsolutions.com/blog/can-i-deduct-mining-costs/#:~:text=How%20To%20Deduct%20Bitcoin%20Mining,mining%20expenses%20are%20tax%20deductible https://www.bitcointaxsolutions.com/blog/can-i-deduct-mining....