Section 179 + Bonus Depreciation

Cut your tax bill by buying
mining equipment

Mining hardware qualifies as tangible business property. Under Section 179, you may deduct the full purchase price in Year 1 — not spread over years.

Save up to 37% of equipment cost in Year 1 — at the current top federal bracket
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37%
Max federal tax bracket savings
Year 1
Full deduction in the purchase year
$0
Minimum purchase to qualify
Equipment ownership

What qualifies
and how it works

When you purchase mining equipment through a business entity, it is classified as tangible personal property. That means it may qualify for significant first-year deductions under current U.S. tax law — reducing what you owe before the miner earns a single satoshi.

  • Section 179: Deduct the full cost of qualifying equipment in the year of purchase — no multi-year schedule required.
  • Bonus Depreciation: Stack an additional first-year deduction on top of Section 179 for qualifying assets.
  • Ongoing business expenses: Hosting fees and electricity costs are deductible in the year they are incurred.
Example: Year 1 tax impact
Equipment purchase$50,000
Section 179 deduction−$50,000
Marginal tax rate (est.)32%
Estimated tax savings$16,000

Illustration only. Actual tax impact depends on your filing status, income level, entity structure, and state taxes. Always consult a qualified CPA before making decisions.

Tax savings calculator

Estimate your Year 1 deduction

Select equipment from OneMiners' most profitable miners and see how much you could save on taxes in Year 1.

Mining equipment
1
Estimated Year 1 impact
Equipment cost
Federal Sec. 179 deduction
Effective equipment cost after tax
Year 1 tax savings
View this miner on OneMiners

For illustration only. Does not account for FICA, AMT, state taxes, phase-outs, or your individual situation. Always consult a qualified CPA or tax attorney before making decisions.

Why it works

Mining equipment is a business asset

You own real hardware that can be depreciated, resold, or redeployed — not a paper claim or a token.

Year 1 deduction

Section 179 lets you deduct the full purchase price of qualifying equipment in the year you buy it — no multi-year depreciation schedule required.

Tangible asset

You own physical hardware — it sits on your balance sheet as a depreciable business asset with real residual value and resale potential.

Ongoing deductions

Hosting fees, electricity costs, and maintenance are all ongoing business expenses that may be deductible in the year they are incurred.

Entity-friendly

Works with LLCs, S-Corps, and sole proprietorships. Your CPA can structure ownership to maximize deductions based on your specific situation.

Clean documentation

OneMiners provides clear invoices and hosting agreements. Production data is available through your dashboard — everything your CPA needs to file.

Hands-off operation

We handle racking, power, cooling, and firmware at our hosting facilities. You own the equipment but never need to touch it.

The process

From purchase to production

Four steps from equipment purchase to Bitcoin arriving in your wallet.

Step 01
Evaluate your situation

Use the calculator above to model your tax bracket and equipment cost. Understand what Section 179 could mean for your tax bill this year — before spending a dollar.

Share your numbers with a CPA to confirm how it applies to your specific situation and entity structure.
Step 02
Purchase through your entity

Select hardware from the OneMiners catalog. The invoice is issued to your business entity so the equipment qualifies as a depreciable business asset under Section 179.

You receive a clear invoice and bill of sale. Your CPA uses this documentation to claim the deduction on your return.
Step 03
We deploy your hardware

Your equipment ships directly to one of our hosting facilities. We handle racking, power, cooling, networking, and firmware. You get dashboard access to monitor your machines in real time.

Hosting costs are a separate, ongoing business expense — and may also be deductible in the year incurred.
Step 04
Bitcoin goes to your wallet

Your miners join a pool and BTC is deposited directly to a wallet address you control. You own the Bitcoin from the moment it is produced — OneMiners never holds it.

You choose your own wallet and payout threshold. Full custody, full control.
Important: Bitcoin mining is not a guaranteed source of income. Mining output depends on network difficulty, hardware performance, electricity costs, and Bitcoin price — all of which fluctuate. Equipment may lose value over time. Past performance does not predict future results. OneMiners provides hosting and operational services only and does not guarantee any level of Bitcoin production.
FAQ

Common questions

Straightforward answers about mining equipment and taxes.

Section 179 is available to businesses, including sole proprietorships. Many buyers set up an LLC or S-Corp, but it is not always required. The right structure depends on your income level, filing status, and state. Your CPA can advise on the best approach for your situation.
There is no minimum for Section 179 eligibility. Even a single miner purchased through a business entity may qualify. The tax savings scale proportionally with the equipment cost and your marginal tax bracket — use the calculator above to model your specific numbers.
The deduction still applies — the dollar amount of savings is proportionally smaller. For example, someone in the 22% bracket buying $25,000 of equipment would save an estimated $5,500 in federal taxes alone. The equipment cost and the mining revenue remain the same regardless of bracket.
Classification depends on your level of involvement and entity structure. With hosted mining through OneMiners, many CPAs treat mining income differently than active business income. This is a detail your tax professional needs to determine based on your specific circumstances — discuss it before you file.
Your tax deduction is based on the equipment purchase price, not Bitcoin's market value. The Section 179 benefit is locked in at the time of purchase, regardless of future price movements. Mining profitability will fluctuate with market conditions, but the tax deduction itself is not affected.
Hosting fees, electricity costs, and maintenance are generally deductible as ordinary business expenses in the year they are incurred. This is separate from the equipment deduction itself — meaning you may benefit from both the Year 1 equipment deduction and ongoing operational deductions year after year.
Yes. Every purchase includes a clear invoice and bill of sale issued to your business entity. Your hosting agreement documents ongoing fees. Production data is available through your dashboard. Your CPA will have everything needed to properly document the deduction and file your return.

Talk to your CPA,
then talk to us

We provide the hardware, the hosting, and the documentation. Your tax professional confirms how it applies to your situation — then you can move forward with confidence.

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Need a crypto-
friendly CPA?

Don't have a tax professional experienced with mining? We work with a network of CPAs who understand cryptocurrency, mining deductions, and equipment depreciation. Contact us for a referral.

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Important disclosures

No tax, legal, or financial advice. The information on this page is for general educational and informational purposes only. OneMiners does not provide tax, legal, financial, or investment advice. Nothing on this page should be construed as a recommendation to purchase mining equipment or as a guarantee of any tax benefit.

Tax deductions are not guaranteed. References to Section 179, bonus depreciation, and other tax provisions are simplified summaries of complex tax law. Eligibility depends on your individual circumstances, entity structure, filing status, income level, and applicable law. Tax laws are subject to change. Always consult a qualified CPA, enrolled agent, or tax attorney.

Mining involves substantial risk. Bitcoin mining is subject to significant risks including volatile prices, increasing network difficulty, hardware failure, rising electricity costs, regulatory changes, and technological obsolescence. There is no guarantee that mining will be profitable.

Calculator estimates are illustrative only. The calculator provides simplified estimates and does not account for FICA, self-employment tax, AMT, NIIT, phase-outs, state-specific rules, or your individual situation. Actual results may differ materially.

Data sources
IRS Publication 946 — How to Depreciate Property IRS — Section 179 Deduction Overview IRS Form 4562 — Depreciation and Amortization Section179.org — State-by-State Conformity
© OneMiners — Educational information only. Not tax, legal, or financial advice.