I have calculated everything for 2022 tax purposes, just wanted to share what I ended up with.
My farm grew very aggressively from Jan to Jul from ~.7 to approx 2.2 PiB. I’ve been solo all year. Most of equipment was purchased 1st half of the year. Some 2021 equipment was liquidated. For the purpose of tax reporting, I’ll give a very conservative estimate of farm using 1 KWh, that equates 24 KWh/day. In reality I spent a lot more energy plotting and cooling, but I don’t want to claim too much, as the farm is located in my house.
Let’s start with the easiest one: electricity. Added up all bills and calculated overall cost/KWh: $0.14
Assumed 1KWh consumption, 24/day, avg cost per day $3.36, multiply by 365 = $1225.49 for year 2022
Equipment is a lot more complex topic. I started in 2021 and bought a lot of hardware. Total amount for 2021 was $21,972.78
I claimed amortization of 1/5 for that year which amounted to -$5,493.19
In 2022, I bought a lot more equipment and sold some of the 2021 hardware on the second hand market:
$41,009.18 purchases
-$2,430 liquidations of 2021 equipment
This allows me to claim the following amortization in 2022:
Tax 2022 year amortization (1/5): -$8,201.84
Tax 2021 Residual Value Less Liquidation in 2022: $19,542.78
Tax 2021 Amortization Deducted (1/4): -$4,885.69
Total 2022 Amortization: -$13,087.53
2022 Gains:
Total XCH earned: 272
USD Total: $11,750.42 - this is assuming “cost basis valuation”. Whenever you get XCH, find out price that day and multiply by XCH obtained. Considering downtrend, this is worth a lot less today.
I haven’t sold anything.
So the math at the end is this:
+$11,750.42
-$13,087.53
-$1225.49
result:
-$2,562.60
And this is considering $62k of equipment purchases over 2 years. ROI my ass