I have begun a cryptocurrency mining business. This is intended to be "in business" not as an investment or hobby. I track all expenses as well as income. I use an exchange called Swyftx in Australia, where any trading, buying, or selling takes place. My Swyftx portfolio lists all my assets and their current AUD value. I have recently spent $11,350 on parts to build a mining rig. The rig is now complete and is online, mining Ethereum. How is the investment into this hardware counted in terms of tax deduction as well as depreciation? My understanding is that computer equipment qualifies in a "home office" scenario as a depreciable asset, but I am not familiar with how depreciation works in this context. The main regular expense is electricity. I am currently using 1338 watts of power, 24 hours a day, which costs about $9 / day as an expense to operate. How should I go about tracking electric use? I have power meters measuring it, but there is no evidence beyond my spreadsheet. My understanding is that the ATO considers held cryptocurrency for business to be a "trading stock" and NOT as a CGT asset. It must be accounted for at the beginning and end of the financial year. If the value goes up from one year to the next, a capital gain is assessed and counts as income. If it goes down, a capital loss is assessed and counts as a deductible expense. Also, my internet service is needed for this business, so can I claim that as an expense in addition to my electric bill, less personal use? What about household goods insurance? In the first year, my hardware expenses will not be covered by mining profits. How is the net loss handled in taxes? Can deductions be carried forward into the next tax year to produce a net-zero result until a profit is made? I have another business as well, driving Uber. Can I apply the net gains and losses of both small businesses together, effectively applying net loss of the crypto business to the income from the rideshare business?
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