Gristle Crüe Weekly Call, 4/5/22 — Taxes

Greg G took us through the tax impli­ca­tions of run­ning a Heli­um Hotspot, and it was enlight­en­ing! Oth­er mem­bers jumped in to guide the con­vo, this was a ultra infor­ma­tive per­spec­tive on the rapid­ly evolv­ing world of earn­ing HNT (and cryp­to in gen­er­al). The one word wrap up? Chickens.

https://vimeo.com/696256624/f1e3e1acfd

** None of this is Tax or Financial Advice. Do Your Own Research! **

0:00:52 — How did you (Greg) get into Cryp­to Tax­es ?
I was Semi-Retired, look­ing into Heli­um
I got involved in Heli­um and saw there was a lack of under­stand­ing and mis­con­cep­tion with tax­es
I am not an Accoun­tant or Lawyer. But, I’ve done enough research that I can pro­vide Education.

0:04:38 — Cryp­to Traders
https://discord.gg/dMwcrxR2
Heli­um can’t talk about the price of the token. Crypto/Helium Traders start­ed as a Heli­um Exchange.

0:06:04 — Per­son buy­ing a Min­er vs. Busi­ness
From the IRS point of view, Cryp­to is prop­er­ty.
Exam­ple. You are a farmer sell­ing Chick­ens. You are bar­ter­ing the price for a Chick­en, and the price changes.
Although peo­ple call it Min­ing. You are being paid to pro­vide a ser­vice.
You have to decide if you are doing it as a Hob­by or as a Busi­ness.
If you do it as a Hob­by you can’t write off expenses.

0:08:58 — Is there any Advan­tage in call­ing Heli­um a Hob­by ?
With a Busi­ness you can write off expens­es, but you also have a 15% self employ­ment tax.

0:16:11 — Kevin
I earned all the Chick­ens, and now I have to sell my Chick­ens to pay the Government.

0:21:49 — How can I reduce Tax­es ?
I can’t low­er the val­ue and I can’t mag­i­cal­ly cre­ate expens­es. Giv­en the high prof­it mar­gins with Heli­um Min­er I would encour­age peo­ple to look into a Busi­ness Spon­sored Retire­ment Plan. (Solo 401K, SEP IRA)

0:23:16 — Russ (The Crue IRA Expert)
Q/A Trans­fer­ing funds as soon as it’s Mined ?

0:33:39 — Michael
Q/A Busi­ness under a Trust ?

0:39:09 — Tur­b­o­Tax. I got a Check Box, did I Buy/Sell/Mine Cryp­to and Noth­ing else.
Peo­ple are still under the assump­tion that if you don’t con­vert to fiat you don’t owe tax­es.
Min­ing is tax­able. Receiv­ing Cryp­to as a gift isn’t.

0:42:37 — Stak­ing vs. Min­ing ?
Yes and No. The Gov­ern­ment has­n’t real­ly giv­en any info about Staking.

0:47:05 — What Tax Tool(s) should I use ?
https://cryptozoa.com/cryptocurrency-tax-software-breakdown-f3b02b22d30c

0:55:19 — Pay­ing Hosts ?
Your Host received income, they respon­si­ble to report it.

0:57:55 — Russ
Q/A Min­ing with a Self Direct­ed IRA ?

0:59:13 — Wrapped HNT

1:00:05 — Out­tro
If you need any help hit up Gris­tle King on Dis­cord and he will con­nect you with Greg

** None of this is Tax or Finan­cial Advice. Do Your Own Research! **