So the OBBB has extended the bonus depreciation benefit and I have been wanting ways to take advantage of potential pass through tax savings.
I am currently a W2 earner and sitting in the top tax bracket. As a W2, I have very limited ability to counter the high taxes besides maxing HSA and company 401k, which I do yearly. My company does not support mega-backdoor Roth.
I am debating starting an S-corp LLC in the hosted Bitcoin mining space/mining as a service (MaaS). My overall strategy is to accumulate the mined Bitcoin to hold long term. Revenue will be calculated at the fair market value at time of mining. My initial expenses of purchasing the miner should qualify for bonus 100% depreciation and then ongoing cost of electricity through the host will be deductible at year end. Although I think this has potential to be profitable after about 2 years, I actually care much less about that and expect to pass through the losses early on to my W2 income. At the same time being able to accumulate and hold BTC.
For me, on the initial surface, this seems like a win-win for my situation and strategy.
https://www.blockwaresolutions.com/products/mining-as-a-service-maas/
Has anyone tried using Blockware or any other MaaS hosting providers? I would appreciate any thoughts on them. I would also appreciate thoughts on the overall tax/business strategy as I am new to this. Any pitfalls I am not thinking of?
I am currently a W2 earner and sitting in the top tax bracket. As a W2, I have very limited ability to counter the high taxes besides maxing HSA and company 401k, which I do yearly. My company does not support mega-backdoor Roth.
I am debating starting an S-corp LLC in the hosted Bitcoin mining space/mining as a service (MaaS). My overall strategy is to accumulate the mined Bitcoin to hold long term. Revenue will be calculated at the fair market value at time of mining. My initial expenses of purchasing the miner should qualify for bonus 100% depreciation and then ongoing cost of electricity through the host will be deductible at year end. Although I think this has potential to be profitable after about 2 years, I actually care much less about that and expect to pass through the losses early on to my W2 income. At the same time being able to accumulate and hold BTC.
For me, on the initial surface, this seems like a win-win for my situation and strategy.
https://www.blockwaresolutions.com/products/mining-as-a-service-maas/
Has anyone tried using Blockware or any other MaaS hosting providers? I would appreciate any thoughts on them. I would also appreciate thoughts on the overall tax/business strategy as I am new to this. Any pitfalls I am not thinking of?