Is there a way to find what Chia price was on a certain date? For IRS (USA) reporting ng purpose, looks like I need to report price when each Chia/Crypto was received/farmed.
Im pretty sure, U only need to pay taxes, when U sell it.
Would be rly cool to make a fortune with crypto and only have to pay some cents for taxes
Uk mining is income tax, not sure about the states.
You can use cmc ( coin market cap ).
Just check what info you need.
I’m uk so different, we can use opening or closing price for the day, but then must use that same price ( open or close) continuously throughout .
Also, not sure how your filing works, but uk, we wait till year ends, so April 5, then have till following Jan to work out what’s owed and pay up.
Basically we have to report any income or capital gain in 2021. Receiving a coin is a income. When sold tge difference between price at the receiving date and the sale will be gain/loss. It is annoying to record the price when you mined. I will be doing it first time, not sure how other in USA do it. Any CPA can tell better.
Same as uk then. Its a pain, but better than being chased and fined for evasion.
Imagine how I feel pooling, daily equations.
And how many coins did you get in 2021?
And how is your wallet tied to your SS# if your in the USA?
It’s not, but the exchanges hand over data to the govt, and if your withholding tax, the fine will be alot worse than just paying it initially.
Due to this complexity, I hsve stopped pooling. Just doing solo.
I was solo to avoid it, but no coin fir 60 days and I gave up and moved to pooling.
You should have waited little more. You were about to get two.
I was having stability issues with my main node, so should have earned 8 xch at least in that time.
My node still drops occasionally, did cpl days back, but just for 4 mins.
Solo that’s a nono, but in a pool i don’t stress about it.
I quick read that, I dont think it covers mining tax as an individual not a business, but maybe I missed it.
Ignore me, seems like a mine field !
Yes, but mining is income taxed, so you need to pay income tax on mined coins valued on day of earning them.
You then pay cap gain , or loss once sold , dependant on if your up or down from the price you mined them at.
It’s alot clearer on hmrc site.
That was a wise delete in my mind
It’s the same for companies or individuals, you get taxed if you convert your chia/crypto to a fiat currency, its either cooperation tax or capital gains. They will get their cut some how !
From my knowledge it’s not the same, individual will only pay income tax, there’s alot more to consider if your a business.
That said, I’m not a business so never looked to far at that.
But your correct, they’ll want a cut for sure.
@Bones what is hmrc site?