Hi,
here in Germany, my Mining rewards are treated as a commercial business where i have to file a seperate Tax Report other than my private crypto trades.
Unfortunately my wallets are mixed and not 100% seperated (this is something i will do
immediately).
How can i differentiate the Income from Mining and the other Earnings???
Any ideas?
If you don’t have to treat the mined crypto as inventory and track the sale of the mined coins for purposes of your commercial business tax report then I think there is an easy answer. I have a similar situation in another jurisdiction and label the receipt of the crypto in the commercial business as Income or Rewards or Mining (which Koinly tracks separately) and report the fiat values on date of receipt as income on my commercial tax return. I treat the crypto received from the commercial activity as a capital asset from that point on and report the gains or losses on all trading from that point on as capital gains or capital losses based on Koinly’s calculations.
if you have to treat the mined crypto as inventory and track the value when that specific crypto is sold then you have a real challenge if you haven’t kept the inventoried crypto in separate wallets. The only thing I can suggest is using an accounting concept like FIFO (first in first out) or an average pricing policy to assign sale values to the inventoried crypto on the commercial side.
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