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Home - The Mining Association of Canada
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Filing Bitcoin Taxes on 1040 for Income, Spending and Mining
If the tax authority decides that your Bitcoin mining activities are a business, your tax liability may be reduced by tax deductions and credits for business expenses. If the IRS regards your mining as a hobby, these options are not available. Cloud mining of cryptocurrencies is a process that is considered an income. This process is a taxable ...
Filing Bitcoin Taxes on 1040 for Income, Spending and Mining
Do you pay taxes on Bitcoin mining? In general, all income or rewards received by a taxpayer in excess of $400 generated from the mining of cryptocurrency must be reported to the IRS. The taxpayer must also identify whether they are a hobby or (self-employed) business miner for tax reporting purposes.
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