Do people who run miners at home set up an LLC first so they can deduct electricity costs from taxes as an ordinary and necessary business expense? If no, then why not?
Discussion
Thats crazy.. btc mining should not be an llc because bitcoin is Permissionless.
Setting up an LLC in your own name to reduce tax liability doesn’t make it less permissionless.
Ppl need to stop doing this. Being a bitcoiner you shouldn't have all this llcs and be all in the system. Tgats my opinion. Things will never change if ppl continue to comply
Unfortunately, until Bitcoin is The Standard, we'll have to interact with the current system.
They still want to tax everything they can, you're just reducing your financial responsibility by going the LLC route.
I did not do that back in 2013. Due to that, I just apply a cost basis everything at $0 or $100, dependent on my mood.
I'd for sure do it today because it wouldn't be a small fleet of S1s and S3s, which I considered to be hobby mining, at best.