Disclaimer: We are not tax advisors. This is general information. Tax laws vary wildly by country (USA vs. Germany vs. Dubai).
Many miners forget that in the eyes of the government, mining Bitcoin is often considered a business activity or income generation. Ignoring this can lead to nasty surprises later.
1. Income Tax (When you mine it)
In most jurisdictions (like the US, UK, Australia, and much of Europe), the moment a mining pool like Gokby sends Bitcoin to your wallet, it is a taxable event.
- Example: You receive 0.01 BTC today. The price of Bitcoin is $50,000. You have effectively earned $500 of income. You owe income tax on that $500, even if you don't sell the Bitcoin!
2. Capital Gains Tax (When you sell it)
Later, you decide to sell that 0.01 BTC.
- Scenario A: Price went up to $60,000. You sell for $600. You have a capital gain of $100 ($600 - $500). You owe tax on the $100 profit.
- Scenario B: Price went down. You sell for $400. You have a capital loss. You might be able to deduct this.
3. Deductions (Write-offs)
The good news! Since mining is a business, expenses are usually deductible.
- Hardware: The cost of your ASIC miners (depreciation).
- Electricity: Every dollar spent on power is a business expense.
- Rent: If you rent a space for your farm.
Why Tracking is Important
You need to record the fiat value of every single payout on the day you received it.
- Gokby Tool: You can export your payout history from our dashboard as a CSV file. Import this into crypto tax software (like Koinly or CoinTracking) to automate the headache.
Conclusion:
Don't let taxes scare you, but don't ignore them. Keep good records of your electricity bills and your pool payouts. Being organized now saves you hours of panic during tax season.
