Best Cloud Mining Sites 2017 Irs Mileage Allowances

How to Claim Mileage Allowances for Cloud Mining in 2017

Cloud mining is a popular way to earn cryptocurrency without investing in expensive hardware or electricity. Cloud mining sites allow users to rent computing power from remote data centers and get rewarded with coins. But did you know that you can also claim mileage allowances for your cloud mining activities

Mileage allowances are deductions that you can take on your taxes for using your personal vehicle for business purposes. The IRS sets the standard mileage rates every year based on various factors such as gas prices, maintenance costs, and depreciation. In 2017, the standard mileage rates were:

53.5 cents per mile for business miles driven

17 cents per mile for medical or moving purposes

14 cents per mile for charitable services

If you use your car to travel to and from cloud mining sites, you may be able to deduct the mileage as a business expense. However, there are some rules and limitations that you need to follow.

Who Can Claim Mileage Allowances for Cloud Mining

Not everyone who engages in cloud mining can claim mileage allowances. According to the IRS, you need to meet two criteria:

You must be engaged in cloud mining as a trade or business, not as a hobby.

You must have a regular place of business or a home office that you use exclusively for cloud mining.

A trade or business is an activity that you conduct with the intention of making a profit. A hobby is an activity that you do for fun or personal enjoyment. The IRS looks at various factors to determine whether your cloud mining is a trade or business or a hobby, such as:

How much time and effort you put into cloud mining

Whether you depend on cloud mining income for your livelihood

Whether you have a history of making or losing money from cloud mining

Whether you have the knowledge and skills to succeed in cloud mining

Whether you treat cloud mining as a business by keeping records, following best practices, and seeking professional advice

A regular place of business is a location where you regularly and exclusively conduct your cloud mining activities. It can be a separate structure or a designated area within your home. A home office is a part of your home that you use exclusively and regularly for cloud mining. You cannot use it for any other purpose, such as personal or family activities.

How to Calculate Mileage Allowances for Cloud Mining

If you meet the criteria above, you can deduct the mileage that you drive to and from cloud mining sites as a business expense. To do so, you need to keep track of the following information:

The date of each trip

The starting point and destination of each trip

The purpose of each trip

The number of miles driven for each trip

You can use a mileage log, an app, or a spreadsheet to record this information. You also need to keep receipts or other proof of your expenses related to your vehicle, such as gas, repairs, insurance, registration, etc.

To calculate your mileage allowance, you can use either the standard mileage rate or the actual expense method. The standard mileage rate is simpler and requires less documentation. You simply multiply the number of miles driven by the standard rate for 2017 (53.5 cents per mile). The actual expense method requires more work and documentation. You add up all the expenses related to your vehicle and multiply them by the percentage of miles driven for business purposes.

You can choose either method in the first year that you use your vehicle for cloud mining. However, once you choose a method, you generally have to stick with it for the entire life of the vehicle.

How to Report Mileage Allowances for Cloud Mining

If you are self-employed, you report your mileage allowances on Schedule C (Form 1040) along with your other cloud mining income and expenses. If you are an employee of a cloud mining company, you report your mileage allowances on Form 2106 (Employee Business Expenses ec8f644aee