TAX BENEFITS OF MINING

One of the reasons I began Bitcoin mining was the tax advantage of mining. Keep in mind, my circumstances and yours may differ so consult an accountant before proceeding.

I used the benefits of depreciation (section 179 and bonus depreciation). I was able to depreciate the cost of the mining equipment to offset my other income thereby reducing my overall taxes. Keep in mind, later when and if you sell that same equipment, you will have to report that sale as profit so eventually you will pay taxes but you can continue to buy equipment and delay the tax for quite sometime. Remember money later is worth a lot less than money now so it definitely make sense.

submitted by /u/Bitcoin-Miner949
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