If a sale is a wash, then you cannot claim those losses but instead they are transferred to the cost basis of the related purchase. The tax code defines wash sales as only applying to stocks and securities, which Bitcoin is neither: A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale [ IRS p17 ] That’s not to say they should be allowed, but since Bitcoins are property they do not fall under this rule.
Economic Substance However, there is more to it than this, something called the “economic substance doctrine”. This says that a transaction must have economic substance apart from just tax effects. Clearly selling and immediately re-buying the same coin at the same price has no economic substance other than generating a tax loss, and so those losses could be deemed invalid.
To avoid this you would have to do something that does have economic substance, such as buying different assets or waiting enough time that you are exposed to risk. How long should you wait? As noted by tax attorney Tyson Cross, there is no clear answer but it is days and possibly up to a week. Spending Something still unknown to many users is that spending and selling Bitcoins are treated the same for tax purposes.
You must therefore calculate any potential capital gains.
But this is a consequence of the IRS treating Bitcoins as property rather than currency. While the amount of gains could be negligible or even zero due to rounding, you don’t know this until you check. This is rounded to zero, as gains are always reported to the nearest dollar so there is nothing to report. Income Having your salary paid, or partially paid, in Bitcoin has become more popular over the last couple of years but you do still need to be aware of any tax implications.
It seems that for most of these situations employees are simply receiving some or all of their existing salary in Bitcoin. In this case the earned dollars, and therefore taxes, haven’t changed.
I say rough idea because many factors related to your mining profitability are constantly changing. A doubling in the Bitcoin price could increase your profits by two. It could also make mining that much more competitive that your profits remain the same.
You actually CAN mine bitcoins on any Android device. Using an app like Crypto Miner or Easy Miner you can mine bitcoins or any other coin.
Android phones simply are not powerful enough to match the mining hardware used by serious operations. So, it might be cool to setup a miner on your Android phone to see how it works. The ASIC industry has become complex and competitive.
Mining hardware is now only located where there is cheap electricity.