They 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 s

They 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....