Service
Mining tax, by people
Mining tax, by people
who run miners
Payouts as income, hosting and power as costs, hardware on a depreciation schedule. This is the part generic accountants get wrong — and it's usually where the money is.
What's included
The full mining picture
Mining has two sides — income when the reward lands, and costs that offset it. Getting both right is the whole job.
Income side
- Pool payouts valued at fair market value on the day received
- Daily reward schedules built from pool and app data
- Multi-coin payouts (BTC, KAS, LTC/DOGE merge-mined, and others)
- USD/EUR payouts handled alongside coin payouts
- Later disposal of mined coins tracked as a separate capital event
Cost side
- Hosting fees and per-kWh electricity charges
- Hardware purchase, shipping, customs and import duty
- Depreciation schedule per machine, over its useful life
- Repairs, replacement parts and warranty work
- Financing costs, including Buy Now Pay Later instalments
- Disposal or resale of a machine at end of life
The big question
Hobby or business?
It changes almost everything — which deductions you can take, whether self-employment tax applies, and how losses are treated. It's rarely obvious from the outside, and it's the first thing we work through on the call.
- How many machines you run, and where
- Whether you operate with continuity and profit intent
- How hosting arrangements affect the analysis
- Whether an entity structure is worth it in your case
Whatever you mine
Coins we handle
Questions & Answers
My miners are hosted abroad. Does that change anything?
It can — it affects sourcing, documentation and sometimes withholding. Hosting invoices from an overseas facility are still normally deductible costs, but the paperwork needs to be right. We go through your specific setup on the call.
Am I taxed when the reward lands, or when I sell?
In most jurisdictions, both — income at receipt, then a capital gain or loss on later disposal, measured against that same receipt value. Which is exactly why the daily reward schedule matters.
Can I deduct the machine itself?
Usually over time via depreciation rather than all at once, though the available method depends on your jurisdiction, entity status and when the machine went into service. Our Section 179 guide covers the US first-year rules in detail.
What if I mine at a loss?
Losses may be usable — but how, and against what, depends heavily on the hobby-vs-business determination. That's the first thing we settle.
I host with OneMiners. Is it easier?
Yes. We can pull your payout history and hosting invoices directly, so there's much less for you to collect, and the quote is typically lower.
Get your mining year straight
Free 30-minute call with an advisor who knows what a pool payout statement looks like.
