I flubbed and added two numbers that ought to have been in opposite columns. $700 is the cash value of the 0.6BTC sold. $870 is the cash value of the 0.8BTC or

I flubbed and added two numbers that ought to have been in opposite columns. $700 is the cash value of the 0.6BTC sold. $870 is the cash value of the 0.8BTC order for more hardware at the time the order was placed. So you've got 4.4BTC in assets as unrealized gains, $1570 (700+870) in realized gains, and $1470 in mining expenses. Does that mean you owe taxes on $100 in recognized gains, and the rest are unrealized assets that are not taxed until they are sold? I think I understand. That sounds a lot more favorable to the miner than the speculative buyer, but it seems to be correct.