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Cryptocurrency Mining Taxes Explained for Beginners - CoinLedgerIf you're mining as a hobby, you can only deduct expenses up to the level of your mining income. This is known as the "hobby loss rule" and prevents people from. Yes, crypto miners have to pay taxes on the fair market value of the mined coins at the time of receipt. The IRS treats mined crypto as income. Equipment: Crypto miners may deduct the cost of their mining equipment. If the equipment cost exceeds $1 million, you need to use the modified accelerated cost.
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