5 ms·
>Bitcoin miners would have to report their earnings as taxable income with a value equal to the worth on the day it was mined. Maybe the rules are more thoroug
by Kapura 13y ago
>Bitcoin miners would have to report their earnings as taxable income with a value equal to the worth on the day it was mined.
Maybe the rules are more thorough in reality than in this article, but how would the above statement apply to people who mine in a pool? Would only the person who hits the hash have to report the income? Would all of the miners?
Additionally, how does the IRS plan on enforcing any of this? It seems like an anonymous currency would be ripe with disregard for regulators.
- jstalin 13y agoPool mining would be no different. Basically the rule is that you "recognize" the income when you receive the bitcoins, be it through pool mining or individually -- it makes no difference.
- the_mitsuhiko 13y ago> Additionally, how does the IRS plan on enforcing any of this? It seems like an anonymous currency would be ripe with disregard for regulators. The same way the IRS enforces all other rules. If you break them and get caught you're in deep troubles.
- sliverstorm 13y agoSounds like an absolute tax nightmare. In a pool you are awarded some small amount of coins every couple hours. Mine for a month, and you'll have hundreds or thousands of "bitcoin income" events, each with its own market price.
- PeterisP 13y agoWhat's the nightmare there? You need a single simple report (excel sheet?) from the mining pool and just total them up. Hundreds or thousands of events is nothing special - if your income would come from selling stuff in a tiny shop, you'd likely have that many receipts to report.
- sliverstorm 13y agoWell, sure, it would be easy if the pool provided you a 1099. But they don't.
- saalweachter 13y agoI believe you just stated the new killer feature for mining pools. Miners will presumably dump pools which make their taxes harder for pools which make them easier.
- LoganCale 13y agoMany people have mined across dozens of different pools over the years (and for different currencies as well), and many of those pools are now defunct.