Managing taxes when mining/trading a cryptocurrency

Discussion in 'Cryptocurrency Mining and Markets' started by jetbird, Apr 14, 2018.

  1. jetbird

    jetbird New Member

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    I started mining in 2018. I'm trying to setup a system to record mining income and trades for tax reporting. I mine/trade a dozen or so currencies, so I have multiple wallets, multiple pools, multiple exchanges... This could get complex. What is you approach to dealing with all this? My first thought is to;

    Step 1: Get Income Generated
    1. Scrape data from the pools I mine to get transactions. Put these into a sql database.
    2. Scrape data from an exchange or other data source to convert a currency I mined to USD.

    Step 2: Trading
    On a weekly basis, manually enter weekly coins mined into cointracking.info using a weekly average basis. Once they are in CoinTracking, I should be able to trade them, and keep the accounting in order.

    What do you do? I'm trying to get my head wrapped around this.

    Thanks,

    Jeff
     
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  2. pricklypunter

    pricklypunter Well-Known Member

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    Here's some interesting reading to start you off :)

    I'm not into mining myself, never really thought about the tax implications, but having read the above article, I would say if there's even a hint of crypto in your income, you better make sure you have access to an accountant that fully understands the tax regulations surrounding crypto currencies, otherwise there's a fairly decent chance you'll get an official suppository one day when you least expect it :eek::p:D
     
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