The IRS released a letter stating how they will handle Crypto Currency. Which isn’t really a bad thing at the end of the day. The reality is if the IRS is recognizing Crypto Currency as a tender it won’t be long until others do as well.
So what does all of this mean? Let me start off with the normal disclaimer — I am not a CPA (Certified Public Accountant) or Lawyer. I am however a small business owner who happens to talk daily with my Accountant. The bottom line up front is treat your mining operation as a small business and keep track of what you buy concerning equipment and etc. The second thing is stand up an LLC so you can separate your finances. There is three topics you should bring up with your CPA.
Remember to talk with a CPA to discuss what options will work best for you!