How miners in the U.S. can delay taxes on their crypto earnings

So, as we all know, the IRS is pretty ruthless and considers any revenue from mining as income the second it hits our wallets. But I've stumbled upon a way to funnel that crypto into a retirement plan, which can help with taxes. First off, set up your mining gig as an LLC if you haven’t done that yet. Next, you need to make sure you're turning a profit after you factor in power costs and depreciation. Then, open a Solo 401(k) retirement plan for your LLC. There are companies that can help you with this and handle the paperwork for you, setting up a trust fund and naming you as the trustee and custodian. After that, create a new corporate account on an exchange like Kraken, Gemini, or Coinbase Pro using the trust’s name. Transfer your mined coins to that exchange. Convert the crypto to cash, send that cash to the trust's bank account, and then move it back to the exchange. Now you can buy any crypto you want with that cash. Congrats, you've just made a 401(k) contribution! If you went with pre-tax, it's like you just got 20-30% more coins. If you picked Roth, you won’t have to pay taxes on future withdrawals. (Optional) You can also move your coins from the exchange to your own hardware wallet. The cool thing about Solo 401(k) accounts is that they let you invest in almost anything. Plus, you’ve got a hefty $60k contribution limit, can borrow up to 50% or $50k at zero interest, and you can roll over existing retirement accounts to buy tax-advantaged Bitcoins while they're still cheap. Just make sure to chat with an accountant or lawyer to get this right. You don’t want to mess it up.

I am meeting with an accountant on June 9th We formalized the company this year. We have an LLC my partner is 45 I am 65 The joint venture we do with 2 other guys they are 25 and 58 they have an LLC We will be looking into this. Oh you are now at 100 points which is a new level Full member once you get the activity in. A few weeks of posting will get you to activity of 120 Rank_________   Required activity   Required merit Brand new----   0----------------------   0 Newbie-----   1------------------   0 Jr Member-   30----------------   1 Member----   60----------------   10 Full Member   120--------------   100 Sr. Member   240--------------   250 Hero Member   480---------------   500 Legendary   Random in the range 775-1030   1000

I forgot to mention that I realized sending crypto to the trust as a 'contribution' is not allowed. You need an alternate way of putting it into the Solo 401(k), like selling it on an exchange, then contributing the cash to the Solo(k); or putting the cash in a new Traditional IRA, then rolling that over into the Solo(k). Every single contribution, loan or withdrawal must be in the form of fiat. This means if you want to take a loan/withdrawal, the trust needs to have enough liquid assets (stocks, bonds, crypto, cash). I'm happy with the provider I chose so far. They handle all the paperwork, IRS filings, etc. for a flat $49/month fee. All I had to do is sign a few papers that they prepared, open a bank account, open an E-trade account, then open a Kraken account. No transaction fees. I can PM you my referral code if you like. The beauty of a Solo 401(k) is that it's truly 'solo', which means you can invest in whatever you like while your business partner can choose their own investments. So I can see it working for your situation. Whenever you think ASIC or GPU prices are too high, or a bear market is coming, you can contribute your share of profits to the Solo(k). No need to buy more equipment if you want a tax deduction. I appreciate the advice I've received from you as well as the other long-time miners. It saved me thousands of dollars. Thank god I cancelled my plan to open an ASIC mining warehouse in Texas. I would've been in deep trouble by now, with customers quitting in the beginning. It would've been a repeat of my failed 2018 ETH warehouse. Instead I'm developing this Stratum software that can distribute hashrate among many customers, switch pools, boost revenue with profit switching, etc.