We started mining cryptocurrency again

hj007

Expert Member
Joined
Aug 30, 2006
Messages
1,252
5 months minimum with current gfx card prices if ETH value stays around $3900. If you're paying normal retail price for cards then longer. I paid my rig off in under 3 months because the ETH I was holding doubled in value. I sold my first few ETH last night.
Nice, that's a very decent annual return for the risk.

How are you dealing with tax? revenue or capital gains and can you depreciate/write off the rig?
 

Snyper564

Executive Member
Joined
Oct 1, 2008
Messages
9,215
Nice, that's a very decent annual return for the risk.

How are you dealing with tax? revenue or capital gains and can you depreciate/write off the rig?
Mined gains are taxable as income tax not cgt and rigs are able to be written off under section 11e wear and tear likely 3 to 4 years
 

Sensorei

Executive Member
Joined
Sep 15, 2008
Messages
5,899
Nice, that's a very decent annual return for the risk.

How are you dealing with tax? revenue or capital gains and can you depreciate/write off the rig?
Yes as posted above, the cost of the rig is tax deductible. F**k the Rand. Whatever I don't plan to hodl in BTC or ETH I will will stake in a stablecoin.

Disclaimer: If I do need to cash out to useless Rands in worst case scenario I will pay SARS what they are owed.
 

hj007

Expert Member
Joined
Aug 30, 2006
Messages
1,252
Yes as posted above, the cost of the rig is tax deductible. F**k the Rand. Whatever I don't plan to hodl in BTC or ETH I will will stake in a stablecoin.

Disclaimer: If I do need to cash out to useless Rands in worst case scenario I will pay SARS what they are owed.
ok thanks. so mined profits probably income tax. And then I assume staking then doesn't result in a conversion from BTC to stablecoin, you only pay tax on the staking profits/interest? Concerned on the ramifications of switching between cryptos, but I assume staking is not seen as a conversion, merely need to deal with any interest earned?

 

Snyper564

Executive Member
Joined
Oct 1, 2008
Messages
9,215
ok thanks. so mined profits probably income tax. And then I assume staking then doesn't result in a conversion from BTC to stablecoin, you only pay tax on the staking profits/interest? Concerned on the ramifications of switching between cryptos, but I assume staking is not seen as a conversion, merely need to deal with any interest earned?

correct interest earned in this instance will be "income" and taxed as such not cgt
 
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