Crypto Mining Tax Guide for Bitcoin and Ethereum Miners (2026)
Understand crypto mining taxes: mined coins taxable as income, business vs hobby, equipment depreciation, and mining tax reporting.
Summary
Crypto mining creates taxable income at FMV when coins are mined. This guide explains business classification, deductions, and reporting.
Key Steps
- 1Income recognition: mined coins taxable at FMV when received.
- 2Business vs hobby: mining as business allows expense deductions.
- 3Deductible expenses: electricity, equipment depreciation, pool fees.
- 4Self-employment tax: mining income subject to SE tax if business.
- 5Track basis: FMV at mining becomes cost basis for future sales.