Status as of Monday, January 8, 2018

I could do 3650 if you're looking for only the miner itself. If you want the Bitmain PSU as well, I'd ask 3800, no less. All shipping included.

Thanks Steve. Just let me know if that works for you.

meinerkey wrote:I could do 3650 if you're looking for only the miner itself. If you want the Bitmain PSU as well, I'd ask 3800, no less. All shipping included.

Thanks Steve. Just let me know if that works for you.

OK, we'll buy it, with the power supply.

We have to pay in cryptocurrency, because Coinbase listed our bank account as "under review" and refuses to release $70,000. That means we don't have enough dollars to pay taxes.

My suggestion, if you approve, is that I can send you a private message with the destination address, and when it arrives, we'll insert a fake share worth $3800, that will be divided automatically according to your account's payout proportions.

Steve Sokolowski wrote:

KryptoNova wrote:How come the fee-less payout threshold for Digibyte (DGB) changed from one day to the other? From $1 to $20 ?
Is there an explanation?

With the explosion in usage, Chris reviewed the transaction fees on many blockchains and found that they have been rising significantly. For example, on Monero, the fees have risen to $5(!) now.

He reviews the fees every week and targets 200 times the fee as the free payout amount. Since we take a 5% pool fee, that means that we never lose more than 10% of our profit to free transaction fees.

Thanks for your answer Steve!

Steve Sokolowski wrote:

meinerkey wrote:I could do 3650 if you're looking for only the miner itself. If you want the Bitmain PSU as well, I'd ask 3800, no less. All shipping included.

Thanks Steve. Just let me know if that works for you.

OK, we'll buy it, with the power supply.

We have to pay in cryptocurrency, because Coinbase listed our bank account as "under review" and refuses to release $70,000. That means we don't have enough dollars to pay taxes.

My suggestion, if you approve, is that I can send you a private message with the destination address, and when it arrives, we'll insert a fake share worth $3800, that will be divided automatically according to your account's payout proportions.

Sounds okay and I'd be happy to do the deal - my only problem is by paying this way, you are essentially asking us to take a 40% cut - because if you pay us this way, it will be taxed as 'mining earnings' like all other, rather than a simple purchase with little/no tax implication. I can't have that, just not prudent, as I hope you can appreciate. Is there no way for a profitable 'cashflow-centric' enterprise such as yours is now to not pay via Paypal or other means?

Meinerkey brings up a good point which makes me ask another question.

Employees who are paid in crypto....are they paid 40% more due to taxes/capital gains needed to be paid out in order to pay bills, or is it understood that the price will rise over time and if they wait 3 months down the road the 40% will typically be covered by the increased value of the currency?

meinerkey wrote:

Steve Sokolowski wrote:

meinerkey wrote:I could do 3650 if you're looking for only the miner itself. If you want the Bitmain PSU as well, I'd ask 3800, no less. All shipping included.

Thanks Steve. Just let me know if that works for you.

OK, we'll buy it, with the power supply.

We have to pay in cryptocurrency, because Coinbase listed our bank account as "under review" and refuses to release $70,000. That means we don't have enough dollars to pay taxes.

My suggestion, if you approve, is that I can send you a private message with the destination address, and when it arrives, we'll insert a fake share worth $3800, that will be divided automatically according to your account's payout proportions.

Sounds okay and I'd be happy to do the deal - my only problem is by paying this way, you are essentially asking us to take a 40% cut - because if you pay us this way, it will be taxed as 'mining earnings' like all other, rather than a simple purchase with little/no tax implication. I can't have that, just not prudent, as I hope you can appreciate. Is there no way for a profitable 'cashflow-centric' enterprise such as yours is now to not pay via Paypal or other means?

We're a business, so we can't avoid issuing you a 1099 form no matter what way we purchase the device.

However, while I can't give advice on what exactly to do, you might want to look into whether having purchased the device in the first place might reduce any tax liability you have.

Steve Sokolowski wrote:We're a business, so we can't avoid issuing you a 1099 form no matter what way we purchase the device.

So, if you go over to amazon or Ebay and buy a miner off of there, you are going to send those sellers a 1099 form?

Yeah, sorry Steve, not interested...it's a capital expenditure, I run a business same as you. You don't issue 1099's to vendors you purchase supplies or hardware from, that's not the normal course of action. Again, you'd be purchasing from my business, if that matters to you, not from me as an individual. And even if you were, you don't issue 1099's for cap ex. When you buy a router and ethernet cables from Staples, do you issue them a 1099? Of course not. And as far as your advice on the original purchase having reduced my tax liability in the past, sure, it absolutely did, as any business's capital expenditure would lower its tax liability (properly amortized of course per IRS guidelines). I guess we're not really seeing eye to eye here, probably best not to pursue a transaction at this time. Best to you sir.

meinerkey wrote:Yeah, sorry Steve, not interested...it's a capital expenditure, I run a business same as you. You don't issue 1099's to vendors you purchase supplies or hardware from, that's not the normal course of action. Again, you'd be purchasing from my business, if that matters to you, not from me as an individual. And even if you were, you don't issue 1099's for cap ex. When you buy a router and ethernet cables from Staples, do you issue them a 1099? Of course not. And as far as your advice on the original purchase having reduced my tax liability in the past, sure, it absolutely did, as any business's capital expenditure would lower its tax liability (properly amortized of course per IRS guidelines). I guess we're not really seeing eye to eye here, probably best not to pursue a transaction at this time. Best to you sir.

Let me do some research into this issue and I'll get back to you tomorrow, after I've gotten some rest. Talk to you tomorrow!

meinerkey wrote:Yeah, sorry Steve, not interested...it's a capital expenditure, I run a business same as you. You don't issue 1099's to vendors you purchase supplies or hardware from, that's not the normal course of action. Again, you'd be purchasing from my business, if that matters to you, not from me as an individual. And even if you were, you don't issue 1099's for cap ex. When you buy a router and ethernet cables from Staples, do you issue them a 1099? Of course not. And as far as your advice on the original purchase having reduced my tax liability in the past, sure, it absolutely did, as any business's capital expenditure would lower its tax liability (properly amortized of course per IRS guidelines). I guess we're not really seeing eye to eye here, probably best not to pursue a transaction at this time. Best to you sir.

I looked into this and it turns out that if we purchase merchandise from a corporation, then it isn't necessary to send a form 1099-MISC to the corporation. I didn't realize that you were a business. Since you are a business, we won't need to deal with this paperwork. The amount reported on the 1099-MISC will be that for the mining services you provided only.

Since that's the case, let me know if you would like to proceed and I can send you the address and get started.