Can bitcoin mining equipment be claimed as a business expense or is it CCA?

Forum|Forum|6 years ago
October 30, 2019
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Best answer by Delphision

Per user:

Shortly after you break even you typically disconnect the miner and throw it in the garbage. The cost varies between a few hundred dollars and about $5K.

This would indicate to me, depending on the period of time from first use to throwing it out, that it is not suitable for depreciation. CCA presupposes a certain life expectancy. If the life expectancy is very short, it is an expense, not an asset.

MamaK

How is it used and How much did it cost?

paig9LohAuthor

You plug it in to power and internet and it produces bitcoins at a decreasing rate. Usually it's priced so that the electricity it consumes will start costing more than the value of the bitcoins that it produces around the time that you break even. Shortly after you break even you typically disconnect the miner and throw it in the garbage. The cost varies between a few hundred dollars and about $5K.

MamaK

I'm sorry, I do not know enough about bitcoin mining, even after a little research on-line, to accurately answer your question at this point. Can I assume you are in the business of selling bitcoins? Or are you using bitcoins as currency in your business?

paig9LohAuthor

I'm neither in the business of selling bitcoins, nor do I use bitcoins in any other business activity. I wanted to invest in bitcoins and using a mining machine seemed like a good way to get more bitcoins for the same amount of dollars. It didn't work out that way (I would have been better off just buying bitcoins instead of mining them). However, my understanding is that mining bitcoins is considered a form of self-employment, and the mined bitcoins are taxed as income. I'm just trying to confirm that I can claim the cost of the mining machine as an expense.

DelphisionAnswer

Per user:

Shortly after you break even you typically disconnect the miner and throw it in the garbage. The cost varies between a few hundred dollars and about $5K.

paig9LohAuthor

Thanks. The life expectancy is typically somewhere between 6-9 months.

DenisCesel

No it is GPU and it is part of simple computer. I remember I have killed GPU once. I was reading much information about GPU hashing, mining etc. And I decided to try hashing wpa2 hacking with only GPU performance. I had old GTX 660 and I wanted to try it on it. That was a huge mistake, I began the process of hashing and went out. When I came my GPU want working. It burned because I have overloaded. Soon I found http://gpu-hash.com/ for hashing.

DGershw

Check user section at minerall.io

This should help