New to Koinly and crypto taxes

[Trevor_Comin]

So ive been mining for about 3 or so months now strictly via nice hash, also have some money invested into crypto. Ive strictly used coinbase for trading (very little on binance) and nicehash for mining. My payouts are linked from nicehash to coinbase BTC wallet. I also has 3 sets of friends that rent garage space from me for their mining rigs that i upkeep and tune. They pay me about 17% of what they mine.

Now as i sit here an look over my trnasactions, im trying to be proactive and have my portfolio tracked for next years taxes.

I have Coinbase and binance synced. But i have 0 clue how to get nicehash syncd. Also what the transactions from nicehash to coinbase should be considered. I see they are showing up as deposited, but there is also a “mining” tag as well. Also what should the transaction payment from my friend to me be considered as well?

I know the $ ive mined from reports via nicehash, the money ive been paid from friends, and the initial $ ive invested of my own capital. From my understanding my “gains” are not matching. Any info that anyone might know surrounds my scenario would be greatly appreciated.

[Anakin_Koinly]

Hello Trevor,

Congratulations on a great business! Sounds like you have a very solid setup.

Your transactions can be tagged in Koinly as “mining” and it will show up on your tax reports in the income section. When you later go on to sell those coins then you’ll be taxed on the realized gains on that sale in the future.

Regarding Nicehash, you don’t need to add this data because, if I understand correct from what you wrote, those transactions are already being logged in Coinbase and that account is syncing with Koinly already. So Basically you have to worry about Binance and Coinbase only. And in Koinly, tag the income as Mining and set the cost-basis to whatever the market price of BTC is at that moment.

I hope that helps.

Anakin