On this episode, Jarrett Carpenter is joined by Noah Buxton and Nick Ward, Co-Founders of The Network Firm, where they share CPA insights and tax considerations for Bitcoin miners and more:
⛏️⚡️ Bitcoin miners have two taxable events: earning Bitcoin rewards and disposing of Bitcoin.
⛏️⚡️ Setting up a legal structure, such as an LLC, can allow miners to take advantage of certain deductions.
⛏️⚡️ Depreciation is a key tax benefit for miners, with options for accelerated and bonus depreciation.
⛏️⚡️ Miners should plan for the tax implications of selling miners, as it can result in both income and capital gains tax. Hobbyist miners and business miners have different tax implications, with business miners being able to take advantage of depreciation deductions.
⛏️⚡️ Planning and working with a CPA is crucial to navigate the complex tax landscape and optimize tax strategies.
⛏️⚡️ Tracking tax basis on mined coins can be challenging, but there are software solutions available to assist with this.
⛏️⚡️ The upcoming bull run may not lead to immediate changes in the tax code, but there is hope for a more favorable regulatory environment for Bitcoin miners.
⛏️⚡️ EPISODE CHAPTERS ⛏️⚡️
01:06 - What Is The Network Firm?
04:05 - Evolution of CPA Work In Crypto & Bitcoin
07:45 - 2 Taxable Events For Bitcoin Miners
09:40 - Tax Myths For Bitcoin Miners
13:00 - Mining As A Business vs Hobby (Simple vs Complex)
18:20 - When Should You Set Up A Business Structure
20:55 - Taking Advantage of Depreciations
27:06 - Taxable Event of Selling Miners
32:09 - Year End Tax Planning For Bitcoin Miners
36:27 - Tax Benefits of Buying Spot vs Mining Bitcoin
39:47 - Tax Tracking Basis of Mined Coins
47:20 - Bull Run Implications To US Tax Code
49:47 - What Law Would Noah Put Into Place For Crypto CPAs
Tax Considerations For Bitcoin Miners Blog - https://compassmining.io/education/tax-considerations-for-bitcoin-miners/
S21 Promo Pack - https://education.compassmining.io/education/antminer-s21-pro-pack/
The Network Firm Website - https://www.thenetworkfirm.com/
TNF X Account - https://x.com/The_NetworkFirm
TNF LinkedIn Account - https://www.linkedin.com/company/the-network-firm/
Noah's LinkedIn - https://www.linkedin.com/in/noahbuxton/
Noah's X - https://x.com/BTCmePLZ
Nick's LinkedIn - https://www.linkedin.com/in/nwcpacbp/
Nick's X Account - https://x.com/TripleEntryCPA
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Compass Mining is a visionary enterprise, looking to reshape the landscape of Bitcoin mining. Whether you're a seasoned miner or someone just starting out, Compass offers the tools, resources, and support to guide you on your mining journey. If you're looking to dive into the world of Bitcoin mining or want to enhance your existing operations, Compass Mining is the partner you've been searching for.
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Spotify - https://open.spotify.com/show/36XWVmiCjUwVq5grF8i041
Apple - https://podcasts.apple.com/us/podcast/compass-mining/id1746980083
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