Mining Expenses

Tax Questions
1

For mining income, how do we sort out the electricity costs(expenses)? Do we manually create a transaction fee somewhere?

In our tax report we have:

  • Capital gains / P&L
  • Other gains
  • Income (airdrop,fork,loan int.)
  • Costs & expenses
  • Gifts, donations & lost coins

It’s not stated anywhere but is mining come under Income?

2

Hi @andwan0, If your electricity costs are paid in fiat then they would not be entered as a transaction in Koinly. If you are carrying on a crypto mining business then the electricity costs paid in fiat would be a deductible expense when you calculate your net income from the mining business and report it using the appropriate tax return form in your jurisdiction.

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