• Tax for crypto staking and running nodes

Hi Team,

Is buying nodes considered as tax wite off ? Lets say i have a crypto node / miner for $500 and it generates an income of $5 a day can i deduct $500 from the income as that was initial investment made ?

And do i need to have a business entity to do write off or just ok with out a business entity for write off. And how is staking taxed ?
Asked 29 days ago in Income Tax

It can be acceptable in the start if there volume is small but once it's starts growing you need to have a proper business entity and books of accounts for same.

 

Also when you make payment to such person you also need to check certain tax deduction provision under income tax and import of service provision under GST etc.

 

For detailed discussion it'll be better if we can have a phone consultation.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
3949 Answers
58 Consultations

5.0 on 5.0

Yes it can be shown as business expense

Naman Maloo
CA, Jaipur
3949 Answers
58 Consultations

5.0 on 5.0

You can depreciate the value of node over period of time at the rate of 40%. There is no need to have business entity. 

 

In case you have any questions, reach out to us at prernapeshori"attherate"peshoriconsultants.com

 

Regards

Prerna

Prerna Peshori
CA, Pune
19 Answers

5.0 on 5.0

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