Cryptocurrency Q&A
Is crypto mining a hobby or business?
Is crypto mining a hobby or business?
CharmedEcho
Fri Dec 13 2024
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5 answers
1119
I'm wondering if crypto mining should be considered as a hobby or a business. I'm not sure about the nature of this activity, whether it's just a fun thing to do in my free time or if it can be a profitable venture.
5 answers
Lucia
Sun Dec 15 2024
Mining cryptocurrencies as a hobby does not qualify you for deductions on certain expenses.
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JejuSunshineSoulMate
Sun Dec 15 2024
Expenses such as electricity and hardware costs cannot be offset when mining is treated as a recreational activity.
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Bianca
Sat Dec 14 2024
However, if you operate your mining venture as a business entity, you are required to report your income on Schedule C.
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CryptoMagician
Sat Dec 14 2024
As a business, you can deduct the expenses related to your mining operation fully.
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Rosalia
Sat Dec 14 2024
This includes costs like electricity and hardware, which are essential for running a mining business.
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