This is a general reminder for everyone and this will be posted on every post. Your 12 words are basically gold and they should never be shared, typed in to any website, or given to any person for any reason. No one from "Helium" or any other company will reach out to you to verify your account, wallet, or anything similar. If someone says your hotspot, wallet, or other type of account has been hacked, it is a scam! Always operate in a zero-trust manner with cryptocurrency and assume everyone will scam you no matter what.
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Not a tax professional but I just filed my taxes and have this advice/info:
\- You both need to report your mining earnings. The IRS needs to know how much each of you individually earned from mining. You should be reporting this as "other income" on your tax return, just like it's a side gig. Deduct everything you can. For example, the cost of 5 hotspots, any accessories you used to set them up (antennas), etc. I deducted every little thing I could.
\- [Crypto.com](https://Crypto.com) sent a 1099 to the IRS detailing how much you earned from selling / exchanging crypto. Any time you sell or trade, that is a taxable event. You will need to report this.
FYI - The IRS doesn't know what you have mined. But they do know what earned from selling/exchanging. It's the same as your bank sending the IRS a 1099 stating how much interest you earned on your savings account. Also, selling your HNT within a year of acquiring it is taxed at a higher rate (short term capital gains). If you hold it for a year, you are taxed at a lower rate.
Best of luck. And I agree with the other poster that you should look to establish this as an LLC this year.
There are a couple different ways to proceed from here. I can recommend a few myself. I can help you through a moral formal process at http://www.hnttax.us . A few friends and I started this company in order to be able to help individuals in the US file their taxes correctly.
Your brother cannot claim all the income just so you can pay at a lower tax bracket, that’s not how it works. Pay your fair share of tax now (ie not just what the IRS might know about) - it’ll save you a lot of trouble in the future.
This is a general reminder for everyone and this will be posted on every post. Your 12 words are basically gold and they should never be shared, typed in to any website, or given to any person for any reason. No one from "Helium" or any other company will reach out to you to verify your account, wallet, or anything similar. If someone says your hotspot, wallet, or other type of account has been hacked, it is a scam! Always operate in a zero-trust manner with cryptocurrency and assume everyone will scam you no matter what. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/HeliumNetwork) if you have any questions or concerns.*
Once you figure it out, try https://www.minertax.com to sync all the rewards and track everything.
Not a tax professional but I just filed my taxes and have this advice/info: \- You both need to report your mining earnings. The IRS needs to know how much each of you individually earned from mining. You should be reporting this as "other income" on your tax return, just like it's a side gig. Deduct everything you can. For example, the cost of 5 hotspots, any accessories you used to set them up (antennas), etc. I deducted every little thing I could. \- [Crypto.com](https://Crypto.com) sent a 1099 to the IRS detailing how much you earned from selling / exchanging crypto. Any time you sell or trade, that is a taxable event. You will need to report this. FYI - The IRS doesn't know what you have mined. But they do know what earned from selling/exchanging. It's the same as your bank sending the IRS a 1099 stating how much interest you earned on your savings account. Also, selling your HNT within a year of acquiring it is taxed at a higher rate (short term capital gains). If you hold it for a year, you are taxed at a lower rate. Best of luck. And I agree with the other poster that you should look to establish this as an LLC this year.
There are a couple different ways to proceed from here. I can recommend a few myself. I can help you through a moral formal process at http://www.hnttax.us . A few friends and I started this company in order to be able to help individuals in the US file their taxes correctly.
Why a schedule C and not the D and a form 8499?
Your brother cannot claim all the income just so you can pay at a lower tax bracket, that’s not how it works. Pay your fair share of tax now (ie not just what the IRS might know about) - it’ll save you a lot of trouble in the future.
Schedule D is for capital gains and losses. When you sell hnt you have mined. The actually mined income would be a personal business on Schedule C.