Random tax question - In the U.S., if you got lucky enough to mine a block, would you owe taxes on that BTC before you sold it?
I guess same question for being part of a pool. Taxed on those BTC before you sell them?
Discussion
Hmm I don’t think so
Pretty sure it’s a yes, the IRS classes anything mined as income, on the day you receive it. Then it falls into capital gains when you sell. If your mining is under a business then you can deduct costs (ASICs) but if you’re a pleb you can’t.
The IRS is not in a pleb miners corner.
That sounds right, but I don’t have to like it.
Agree, common sense is that this is obviously unfair. I’m surprised KYC free sats direct from larger miners doesn’t exist as I think most people would pay a premium vs exchanges. I’ll mine whatever the cost on principle but the tax laws are (intentionally?) limiting.