Mining income and the records behind it

Receiving coins and selling coins are different

Mining receipts generally create income based on their USD fair market value when received. A later sale can create a separate capital or business gain or loss depending on the circumstances. The correct reporting route depends on whether the activity is a trade or business.

Keep a reward log and an expense log

A pool statement alone may not include your own wallet transfers or the USD valuation used on your return. Keep rewards, pool fees, equipment and energy evidence in separate records.

• Reward date and quantity.
• USD price and source at receipt.
• Pool statement and payout transaction.
• Expense receipts and business-use allocation.

Business status affects more than the form

Self-employment tax, deductions, equipment treatment and estimated payments need review from your complete facts. The staking calculator is not a mining tax return.

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