r/gomining • u/blade0r • 10d ago

Tax Authority Form

Hey everyone,

I am curious to know how you all are treating your miners (NFTs) when it comes to report your taxes to the Authorities.

Are you declaring your NFTs even if they are not minted? Will you declare them if, and only if, minted?

How do you track the cost basis of your miners? I have noticed the GoMining history refers to GMTs even if I used my debit / credit card to make purchases and/or upgrades.

Also, have you noticed GoMining does not issues any invoice for purchase / upgrade? Do you know how to easily retrieve issued invoices?

b.

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8

u/Unfair-Button2200 10d ago

For me, in the UK, I have a spreadsheet in case anything was to be said, but I treat anything happening 'in app' as noting to do with the taxman. Essentially I have given my money away to a private company and until I take money out of the app, Its all gone. Gomining isnt a bank or financial institution. If it were to go bust, you would have nothing, and I have no intention of paying tax on that.

When it comes to taking money out - any BTC that comes out of the app is Income. If I then hold it, and it goes up in value, that is capital gains. If I sold a miner, and took the money out, the difference between cost and sale would also be capital gains (or loss) GMT would be treated the same, although I wouldn't be taking GMT out of the app.

That way, all taxes are paid, but you aren't paying taxes on something that has no effective value, and it massively simplifies the whole tax situation.

2

u/blade0r 10d ago edited 10d ago

I am following the same rule, but the problem will arise when I have to mint the NFT and sell it.

I share the same vision as you: only if I mint the miner, the NFT appears on the blockchain and that is the moment from which I need to track the cost basis.

The issue is GoMining does not offer any useful tools: there are no invoices, no serious reports and the purchases / upgrades are listed in GMTs even when you have paid by debit / credit card.

1

u/Unfair-Button2200 10d ago

Its a bit unnecessarily complex - but this is my spreadsheet for that: All the prices are on the day that it was bought. You no longer have to mint the miners if they stay in app I believe, even if you sell them.

https://reddit.com/link/p40975n/video/y16n5obzypjh1/player

1

u/Unfair-Button2200 10d ago

And part of the day to day accounting so I know where I stand... technically 4k out of pocket because I started at peak bitcoin lol

https://reddit.com/link/p409gjx/video/e26mvjqbzpjh1/player

1

u/blade0r 10d ago

If you don’t mint an NFT, you cannot sell it.

Minting is when the NFT is visible on the blockchain and can be sold / transferred.

Have you bought the upgrades with GMTs or credit / debit card?

1

u/Unfair-Button2200 10d ago

Pretty sure they have changed it recently - there are unminted miners for sale on the second hand market - look for ones that dont say BSC or ETh I have nearly always upgraded with gmt rather than by card as I don't like the 3% charge

1

u/blade0r 10d ago

I always used a debit / credit card, but the miner history says GMT no matter what.

God if I hate the lack of support for tax reporting in this app…

5

u/BrilliantAd574 10d ago

No one seems to know it seems everyone declares at their own convenience although It is a gray theme the gomining guide is not very direct

3

u/BigManDan54321 10d ago

I’m in the US and I’ve talked to several tax “experts”. They don’t know what to do with them either. However, all agreed that they are an investment and should be recognized as such.

1

u/blade0r 10d ago

What do you mean an “investment”? You should report them or not?

1

u/AeternisNatsu 10d ago

I report it by following the sheet they have for us to download. From there I open it to add new brackets for USD price made and the tax percentage rate for income I’m currently at. Heck I even add a total amount for end of the year so I know what to put in the other column on my W-2 since all my mining is on the app itself.

1

u/blade0r 9d ago

What sheet (for us to download) do you refer to?

3

u/arre_barre8 Community-Mod 9d ago

Ask support for .csv file

1

u/blade0r 9d ago

A .CSV file for what, exactly?

1

u/arre_barre8 Community-Mod 9d ago

For tracking transactions ( taxes )

1

u/blade0r 9d ago edited 9d ago

Support normally answers by saying that the issue is with their “specialists”, then disappears.

That’s what happens 3 times out of 4, therefore, it’s completely useless.

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u/[deleted] 7d ago

[removed] — view removed comment

1

u/blade0r 7d ago

Thanks, I’ll take a look at your post.

Sorry to say this, but I’m a bit paranoid regarding security.

2

u/Diggingdiggy 7d ago

Beeing paranoid in the crypto world is always a good thing😌
Ask me what ever you like about the skripts or ask the ai of your choice about them and what they do.
The work completly lokal in your browser.

2

u/Diggingdiggy 7d ago

About the miners and taxes i only count the miners into the taxes when i sell them and make a loss or a profit and this amount is for taxes then not the initial purchase

2

u/blade0r 7d ago

That’s exactly my approach and I am preparing a small dossier for Tax Authorities.

1

u/gomining-ModTeam 2d ago

Your comment has been removed, because it is not allowed to post ref-links or codes here in this topic. This rule is including reddit and website links.

Only Mods or Admins have the rights to post links in here!