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HI i like to know if i mine crypto and i mine $200 worth and your value is $1000 at end of june 30 how much tax i pay on this even if i never dispoal or traded it or if i send it to a another wallet on exchance does this incur a taxable event or not even that it still in same currantcy but send to different wallet and both wallet registed under you own name
Sounds like initially you would be classified as a Hobby Miner.
A hobby miner is someone who participates in cryptocurrency mining/forging as an enjoyable pastime not in a business-like manner seeking commercial profits. Their investment in mining equipment will be relatively insignificant - a small scale operation typically at home - and intention to accumulate the rewarded coins rather than sell immediately to turn a profit.
If you’re a hobby miner or forger, then broadly speaking this is how you’re taxed:
* Rewarded coins are not income but rather a capital acquisition.
* Cost of equipment is allocated as a cost of acquisition of the rewarded coins.
* Running costs are also allocated as a cost of acquisition of the rewarded coins.
* On disposal of the rewarded coins, gains are 100% taxable if within 12 months of being acquired
otherwise 50% taxable where held for more than 12 months