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How do you guys plan on reporting this income for taxes? Capital gains? Sole proprietor small business? Seems like the former would give better net income, but would be a huge pain to put into Schedule D with tons of small transactions. Also, if you're selling GPU power and not the actual coins, that sounds more like small business income than capital gains...
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Jun 21, 2017 18:19
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QuarkJets posted:Self-employment tax is for people who are self-employed, not people who happen to make some money selling their assets. You still have to report the income regardless but that's not a big deal so long as you keep accurate records My understanding is that if you are using NiceHash, you are selling your compute time, which would be self-employment income. Then, you're paid in BitCoin (an asset). If the value of that BitCoin appreciates before you sell it the next week or whatever, you'd also owe short-term capital gains tax.
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Jul 21, 2017 16:10
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