7 ms·

So here's a question for everyone -- if I take a few hunks of wood, say worth 10 bucks, and use it to craft a musical instrument that can be sold for $100, does

by derekp7 13y ago

So here's a question for everyone -- if I take a few hunks of wood, say worth 10 bucks, and use it to craft a musical instrument that can be sold for $100, does that count as $90 in income, even if I just leave it on a shelf?

molsongolden 13y ago
Not at all. That is the way I was seeing it but gamblor956 explained the reasoning behind the IRS guidance in a response to one of my comments below: "Bitcoins earned through mining are considered compensation for providing resources to the Bitcoin network to compute hashes verifying transactions." When viewed as compensation then the treatment seems consistent with NSOs or barter transactions.