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taxes

(14 articles)

Bitcoin Cost Basis Tracking in 2025 and Beyond

Most Bitcoin holders don't realize that the cost basis method they use to calculate taxes can dramatically change their tax bill and audit risk—and with new IRS reporting requirements kicking in, FIFO (First In, First Out) is becoming the automatic default unless you can prove you're using Specific Identification with proper documentation. This article breaks down the critical difference between these two methods, when each one makes sense, why the "HIFO" and "LIFO" methods you might have used before aren't actually IRS-approved, and what you need to do before 2026 to lock in the most tax-efficient approach while you still have time to clean up your records.

Bitcoin Mining Tax? - Biden Administration Proposes Tax on Mining

The United States, long considered a hub for innovation and technological advancement, finds itself at a crossroads with its approach to cryptocurrency regulations, particularly in relation to Bitcoin mining. Despite recent approval for Bitcoin Exchange-Traded Funds (ETFs), the Biden administration's reintroduction of the Digital Asset Mining Energy tax (DAME) has sent shockwaves through the industry, raising concerns about its future viability on American soil. ## The Dire Consequences of the DAME Tax Proposal With a rich history dating back to Bitcoin's inception, the mining complex in the United States has flourished, boasting cleaner energy practices compared to many other nations. However, the proposed 30% excise tax on electricity used for Bitcoin mining threatens to dismantle this thriving industry. Senator Cynthia Lummis of Wyoming warns that such a punitive tax would effectively eradicate any foothold the industry has within the country. > “A proposed 30% punitive tax on digital asset mining would destroy any foothold the industry has in America.” -- Senator Cynthia Lummis ## Political Backlash and Economic Fallout Critics, including prominent figures like Robert F. Kennedy Jr., have lambasted the Biden administration's stance on the DAME tax. The proposal, initially introduced in 2023 and swiftly rejected, resurfaced in the fiscal 2025 budget proposal, raising serious concerns about its potential impact. Proponents argue that the tax aims to make miners pay their "fair share" of costs imposed on local communities and the environment. However, overlooking the industry's significant contribution, which saw the U.S. become the world's largest Bitcoin mining market, could lead to devastating repercussions. ## The Urgent Need for Reconsideration and Collaboration As the Biden administration faces mounting pressure and dwindling approval ratings, the repercussions of the DAME tax could further exacerbate the situation. Not only does the tax threaten to drive American Bitcoin miners and investors away, but it also risks stifling innovation and economic growth. The administration's failure to engage with industry stakeholders and heed their concerns could have far-reaching consequences. In light of the potential ramifications, there is an urgent need for collaboration and dialogue between policymakers, industry leaders, and stakeholders. Shelving the DAME tax proposal and seeking input from crypto advocates could not only safeguard the future of Bitcoin mining in the USA but also strengthen the country's position as a global leader in technological innovation. As the world watches closely, the Biden administration must recognize the significance of Bitcoin mining to the American economy and act decisively to ensure its continued success. Failure to do so could result in irreparable damage, both economically and politically, with far-reaching implications for the nation's future. Source: [Cointelegraph](https://cointelegraph.com/news/biden-is-asking-congress-to-kill-the-american-bitcoin-mining-industry)

Bitcoin Mining Tax? - Biden Administration Proposes Tax on Mining

The United States, long considered a hub for innovation and technological advancement, finds itself at a crossroads with its approach to cryptocurrency regulations, particularly in relation to Bitcoin mining. Despite recent approval for Bitcoin Exchange-Traded Funds (ETFs), the Biden administration's reintroduction of the Digital Asset Mining Energy tax (DAME) has sent shockwaves through the industry, raising concerns about its future viability on American soil. ## The Dire Consequences of the DAME Tax Proposal With a rich history dating back to Bitcoin's inception, the mining complex in the United States has flourished, boasting cleaner energy practices compared to many other nations. However, the proposed 30% excise tax on electricity used for Bitcoin mining threatens to dismantle this thriving industry. Senator Cynthia Lummis of Wyoming warns that such a punitive tax would effectively eradicate any foothold the industry has within the country. > “A proposed 30% punitive tax on digital asset mining would destroy any foothold the industry has in America.” -- Senator Cynthia Lummis ## Political Backlash and Economic Fallout Critics, including prominent figures like Robert F. Kennedy Jr., have lambasted the Biden administration's stance on the DAME tax. The proposal, initially introduced in 2023 and swiftly rejected, resurfaced in the fiscal 2025 budget proposal, raising serious concerns about its potential impact. Proponents argue that the tax aims to make miners pay their "fair share" of costs imposed on local communities and the environment. However, overlooking the industry's significant contribution, which saw the U.S. become the world's largest Bitcoin mining market, could lead to devastating repercussions. ## The Urgent Need for Reconsideration and Collaboration As the Biden administration faces mounting pressure and dwindling approval ratings, the repercussions of the DAME tax could further exacerbate the situation. Not only does the tax threaten to drive American Bitcoin miners and investors away, but it also risks stifling innovation and economic growth. The administration's failure to engage with industry stakeholders and heed their concerns could have far-reaching consequences. In light of the potential ramifications, there is an urgent need for collaboration and dialogue between policymakers, industry leaders, and stakeholders. Shelving the DAME tax proposal and seeking input from crypto advocates could not only safeguard the future of Bitcoin mining in the USA but also strengthen the country's position as a global leader in technological innovation. As the world watches closely, the Biden administration must recognize the significance of Bitcoin mining to the American economy and act decisively to ensure its continued success. Failure to do so could result in irreparable damage, both economically and politically, with far-reaching implications for the nation's future. Source: [Cointelegraph](https://cointelegraph.com/news/biden-is-asking-congress-to-kill-the-american-bitcoin-mining-industry)