Using WhatToMine you can check, how profitable it is to mine selected altcoins in comparison to ethereum or bitcoin. How to mine Ethereum 'the Easy Way. Ethereum (ETH) Ethereum Classic (ETC. A batch of Ethereum Mining contracts where all you do is pay them some cash. Bitpanda does not sell Ethereum Classic. To buy ETC you must buy bitcoins or ether and. Mining Ethereum has more. And also pay less in fees than buying. You will need to download two programs and need to have a decent GPU with more than 1GB of memory to get the most bang for your buck in terms of mining as Ethereum works on a memory hard hashing technique which GPU's are best. You can also mine Ethereum Classic (ETC) if you start your geth in Step 7 with the param --oppose-dao.

Ethereum Classic The Bitcoin of smart contracts Ethereum Classic is an open blockchain that all are welcome and free to use. We believe in distributed ownership. We believe that for a blockchain to succeed it must be decentralized in network, technology, community, and leadership.

There is no group that can take away your right to use ETC how you choose. On many blockchains, despite their 'decentralization', a small few hold the ability to change how your contracts work and control your money. On ETC we have taken great care to distribute our blockchain stewardship such that no one group controls ETC. Our highly decentralized ecosystem means that ETC does not have the same centralization issues of other blockchains. Website: ETC Community Forums • ETC Community Chat: • Twitter: • • Telegram: • (English) • (Russian) • (Russian) Network Status: • (Live network stats) ETC Nodes: • • (Run: $ parity --chain=classic) • (In development. Testnet only) Block Explorers: • • • ETC Resource Sites • • • ETC Wallets: • (Web Wallet) • (Web Wallet; Choose ETC top right) • (Built in ShapeShift) (Desktop Wallet; BETA) • (Desktop Wallet; BETA) • (ETC Chrome Plugin) • • • • • (Buy & Store ETC) • (Built-in Exchange) Help the project!

Getting things done in a decentralized project is all about. Ask around on for what needs to be done., or contribute to existing ones: • • • Learn: • • • • • • • • • Core Development Teams • • • Discuss: • • • • Trade ETC: • • • • • • • • • • • • • • • • • • • & ETC Mining Pools: • • • • • • • • • • • • • • & Community Guidelines: • Follow and. • Please behave in a courteous & professional manner. Inappropriate behavior includes, but is not limited to: personal attacks, threats of violence, slurs of any kind, posting a person's private info (doxxing).

• Price discussion belongs to. • Submissions mostly about another cryptocurrency should be avoided (may be posted to ). • Do not create new accounts to get around Reddit or Subreddit rules (may result in a site-wide permaban by Reddit). • No URL shorteners (use direct URL). • No duplicate posts. • No spamming, trolling, or drive-by posting. • No misleading titles.

• No referral links. • No posting addresses or soliciting money (exception: large, recognized, trustworthy charities). Note: Breaking the rules may get your post deleted and/or lead to a ban. Related Subreddits: • • • • • • •. As the title implies, this post is a question about US tax laws and ETC. I've read and read and read on about 40 different pages opinions, notices, and comments from various sources.

But I have seen at least three different answers. And they almost all refer directly to Bitcoin, not any of the alt-coins (and yes, I am aware that the alt-coins are, for the most part, calculated on a Bitcoin value as it's the granddaddy of them all). So I have recently started back up mining with a little more seriousness than my last dabble in it last year.

Nothing major, just 120Mh/s that's running 24/7. So enough to make me some profit, but obviously nothing that's buying me a home anytime soon. I started with ETC and I am sticking with ETC. What I am trying to figure out is how do taxes play into this for ETC. Q: Do ETC count as ordinary income or capital gains income? Q: Do I pay taxes on the ETC coins as they are earned/paid to my wallet? Q: If the above question is yes, then would I also have to report any gains/losses when cashing the ETC out for USD?

Do I then pay taxes again when trading the ETC in for USD that is paid to my account? Q: With the volatile and fluctuating market, in which the prices of ETC change my the second, how do I decide the fair market value of each ETC at the very moment that they are paid into my wallet (something that generally often happens while I am sleeping). Q: I've always been able to file my taxes under a standard 1040. Is daily mining going to require me to file each and every daily ETC payment via a more advanced tax form and/or should I just be filing with a CPA come tax time? Also, does anyone have any good suggestions for tax calculation sites specifically for ETC? Even just somewhere decent to really start looking into the US tax information for ETC itself, as I said, so much of what I have found specifically discusses Bitcoin as payments from an employer or being used to purchase goods/services (not something we're doing with ETC yet). Thanks in advance, and if this has already been discussed here in this subreddit, feel free to link that thread.

I tried searching both via Reddit and via Google with a siteL modifier, but as we all know Reddit's search algorithms suck. EDIT: Also, if there's a better subreddit for this sort of question, just let me know. I promise not to get my feelings hurt. I was just sticking with the ETC crowd as that's where my mining heart calls home. I think you have a good grasp on the complexities. To summarize my 'opinion', if it were me I would probably treat mined etc as income with an income value to be determined by the timestamp mined. You might want to select a reasonably widely spread index for calculations.

The index would be my thought. So you'd start with an income base equal to the value at the moment earned as a mining reward. Of course deduct mining costs as expenses. IF you held the ETC then from that point forward taxes are determined by how long before you traded it to another currency (like-kind-exchange) and eventaully cashed it out to determine cap gains. But here is another interesting possibility.

And this is based on the fact that australia just pased a law that goes into effect soon making Cryptocurrencies. Actual Legal Currency. As in non-taxable. As adoption continues, this is the most likely endgame. Efficient HTMLCOIN HTML Mining.

That it just become money. Keep Records. Ride it out as long as possible. EDIT (Add Australia Reference): Scoll down to section.

'Removing the double taxation of digital currency The Government will make it easier for new innovative digital currency businesses to operate in Australia. From 1 July 2017, purchases of digital currency will no longer be subject to the GST, allowing digital currencies to be treated just like money for GST purposes.

Currently, consumers who use digital currencies can effectively bear GST twice: once on the purchase of the digital currency and once again on its use in exchange for other goods and services subject to the GST. Most of it seems pretty straight forward under standard taxation laws here in the US, but where it gets muddled is mining. Without it being well explained right now it seems as if we're supposed to report as both a capital gains income (Short-term if held under 1 year and one day. Long-term if over 1 year and a day) and self-employment income. But that's just nuts as that would mean, based on standard tax brackets, a base 30% tax on mined and sold coins. And that's assuming you don't change a tax bracket by the end of the tax year if your given coin explodes in value. I found Bitcoin.tax and it appears to be pretty helpful in letting you import your payments as well as an closed orders on your ledgers, but again it really only tracks it as a capital gains tax.

The IRS notice from 2014, in one tiny paragraph on mining, sounds like they want you to count it as self-employment income. That's a bit of a different ball of wax here in the US than just paying it as capital gains as the latter is just a federal income tax, whereas SE tax covers our FICA (paying for Social Security/Medicare/etc.). The silliest part is if/when they require you to record each coin received daily (obviously for gains/losses reasons).

My pool tends to pay into my wallet when I am sleeping. And good grief, as we know, ETC right now can vary anywhere between $14USD and $17+USD within the day. Do you want to tax me on $14 per coin or $17 per coin? Because that's going to make a difference at the end of the year and the exchanges aren't so keen on providing a 'was worth X at X timestamp'.

I guess what I am going to do for now is just tax 30% of my monthly income from it before any expense and set it aside in an online savings. Then if I owe at tax time, I'll just tax it out of that. How I am going to directly document energy usage for the mining (since my home's electricity is also used to basic daily needs) to report to for deduction is going to be tricky though. I'd love to see a similar system here in the US as you mentioned with that new law in Australia, but God knows I don't trust the IRS to ever give us any sort of break. Mining is self employment. You receive income equal to the value of the coin paid to your address (ie from the pool) or whatever fraction of a coin your receive.

From there, much like stocks, you're only required to keep a record of appreciation/depreciation on a yearly basis or when you cash out (if you cash out). The historical data from coinmarketcap should be sufficient to justify the self-employment income at time of mining. For documenting electricity costs, Kill-o-watts are cheap, and can be more or less treated like logging work miles on an odometer. I just ordered a new Kill-a-watt for $20 so that should be easy enough there.

Not like the daily usage is going to change. And, in fact, NV Energy gives me a daily readout of my kw/h usage so that backs up any tracking.

What confused me was, which came highly recommended, was automaticaly putting a 15% capital gains tax on the 47 ETC I recently sold for the purpose of investing in new mining equipment (something I know that I will be able to partially deduct as an expense). That'd been my mining output for the little over 5 weeks since I started back up. Therein lie my confusion: In that time ETC jumped from appx. $5 per to an average of $16.92.

Seemed to be charging me the cap-gain tax on, well, $16.92 for each coin. That doesn't measure up as, let's say for the most recent coins, the value didn't change from the day they were mined to when they were sold. So in effect I would be paying 15% for my SE tax and then 15% again for the cap-gains.

When there was no actual gain for those latter coins mined. The earlier coins, sure. I am not sure if there were trying to average out the difference between the $5 to $16.91 spread or what, but it made no sense. So from my understanding: • Let's say my current average with the difficulty changes nets me 1 ETC per day. That's a currently daily SE income of $16.91. I track that as my SE income and pay my 15% tax on that when I file. • That nets me a gross income of $507.30 USD month before deducting the electricity costs.

• I sell off the coins at the end of the month. At this point I only pay on any gains, correct? We'll say the average for ETC jumps to $18. I pay the cap-gains difference between the $16.91 and $18 and pay my 15% on that $1.09/per (or $32.70 for the month) USD difference, not the full $18/per, right? It would be odd to pay 15% SE tax on the $507.30/month and then pay 15% capital gains tax on $507.30/month when selling the coins (not that I would be selling in-full each month. At most I will cash out enough to cover electricity expenses every 6 months, assuming the selling market is good).

Of course I am still going to file with a CPA at the end of the tax year to make sure, so I know this is all to be taken with a grain of salt, and I thank you for that. Also, thank you for. That will come in handy.

Estimated Expected Cryptocurrency Earnings The estimated expected cryptocurrency earnings are based on a statistical calculation using the values entered and do not account for difficulty and exchange rate fluctuations, stale/reject/orphan rates, and a pool's efficiency. If you are mining using a pool, the estimated expected cryptocurrency earnings can vary greatly depending on the pool's efficiency, stale/reject/orphan rate, and fees. If you are mining solo, the estimated expected cryptocurrency earnings can vary greatly depending on your luck and stale/reject/orphan rate. Time Frame ETC Coins BTC (ETC/BTC at 0.00252051) USD (BTC at $8,524.10) Power Cost (in USD) Pool Fees (in USD) Profit (in USD) Hourly 0.01360226 0.00003428 $0.29 $0.06 $0.00 $0.23 Daily 0.32645416 0.00082283 $7.01 $1.44 $0.00 $5.57 Weekly 2.28517912 0.00575982 $49.10 $10.08 $0.00 $39.02 Monthly 9.79362481 0.02468493 $210.42 $43.20 $0.00 $167.22 Annually 13 0.30033331 $2,560.07 $525.60 $0.00 $2,034.47.