Crypto mining

[GhostX]

I wanted to know whether crypto mining is legal in canada or not and if i can exchange  crypto to canadian dollars. Is it legal or do i have to pay tax or consult to tax agency . 

[alyen]

Mining is not illegal and you report it on your income tax.

[12345678]

wrong time to start mining

 

for tax you should listen to a tax consultant, or you can not declare it, and avoid by paying taxes, or paying less taxes by paying yourself with some ntf

[tikker]

43 minutes ago, 12345678 said:

or you can not declare it, and avoid by paying taxes

and get hit with tax evasion/fraud measures later on...

 

If your local law states you have to declare it then just do it.

[12345678]

29 minutes ago, tikker said:

and get hit with tax evasion/fraud measures later on...

 

If your local law states you have to declare it then just do it.

tax avoidance is not illegal, though evasion it is

they are not the same thing

[tikker]

2 hours ago, 12345678 said:

tax avoidance is not illegal, though evasion it is

they are not the same thing

Indeed they are not and you not reporting income or assets is tax evasion, not avoidance. By not reporting your mining revenue or crypto assets you are hiding and lying about the amount of money you have or receive. Tax avoidance means doing your finances in such a way that it results in the least amount of taxes to pay, not lying to the government about your income.

[12345678]

4 hours ago, tikker said:

Indeed they are not and you not reporting income or assets is tax evasion, not avoidance. By not reporting your mining revenue or crypto assets you are hiding and lying about the amount of money you have or receive. Tax avoidance means doing your finances in such a way that it results in the least amount of taxes to pay, not lying to the government about your income.

either way it's stuff that you should look up with a tax consultant/lawyer

 

Besides they don't really have any way to look up* on crypto possession, so you could in theory exploit things such nft to pay less taxes

 

*unless you ain't doing some pretty red flags, like increasing electricity consumption without justifications 

[GhostX]

4 hours ago, 12345678 said:

*unless you ain't doing some pretty red flags, like increasing electricity consumption without justifications 

Thats unavoidable a normal mining rig will consist around 20-50 gpus so its obvious they will know the spike in electricity consumption.

[tikker]

6 hours ago, 12345678 said:

either way it's stuff that you should look up with a tax consultant/lawyer

 

Besides they don't really have any way to look up* on crypto possession, so you could in theory exploit things such nft to pay less taxes

 

*unless you ain't doing some pretty red flags, like increasing electricity consumption without justifications 

But that's just saying it doesn't matter if it's illegal as long as they don't find out. The problem is that if you never report it you can't spend or use it either. That's where the issue comes in.

2 hours ago, GhostX said:

Thats unavoidable a normal mining rig will consist around 20-50 gpus so its obvious they will know the spike in electricity consumption.

You could mine on a single GPU and they probably wouldn't bat an eye, but yes a 20+ GPU rig will draw a few kWh extra that would likely put you in an obviously higher consumption bracket than your average without mining.

[12345678]

7 hours ago, tikker said:

But that's just saying it doesn't matter if it's illegal as long as they don't find out.

and so, what's wrong

7 hours ago, tikker said:

The problem is that if you never report it you can't spend or use it either. That's where the issue comes in.

nieh, it really depends on the state though, some shops do accept cryptos, or you can exploit nft, to directly cashout cryptos if there are less taxes

7 hours ago, tikker said:

You could mine on a single GPU and they probably wouldn't bat an eye, but yes a 20+ GPU rig will draw a few kWh extra that would likely put you in an obviously higher consumption bracket than your average without mining.

well it really depends, you can also declare it as server stuff, or that you need all of those hw to run heavy stuff; 

 

ps: I'm not here to incentivate or disincentivate illegal stuff, it's just saying' or blabbish bullshits

[tikker]

25 minutes ago, 12345678 said:

and so, what's wrong

That's up to your moral compass.

26 minutes ago, 12345678 said:

nieh, it really depends on the state though, some shops do accept cryptos, or you can exploit nft, to directly cashout cryptos if there are less taxes

If you start using undeclared crypto earnings for things you'll start being left with too much fiat money for your spending pattern. That'll become suspicious if you start doing large purchases regularly.

[12345678]

1 hour ago, tikker said:

If you start using undeclared crypto earnings for things you'll start being left with too much fiat money for your spending pattern. That'll become suspicious if you start doing large purchases regularly.

again there are several ways to avoid taxes, as the one that I noted before with nft, in some states they are absent or really low taxes on em