DIMO Tax Reporting Guide 2025

Complete guide to reporting DIMO vehicle data monetization income on your taxes. Learn about DIMO token taxation, device deductions, and required IRS forms.

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What is DIMO?

DIMO (Digital Infrastructure for Moving Objects) is a decentralized network that allows vehicle owners to monetize their car data. By connecting a DIMO device to your vehicle, you share anonymized driving data and earn DIMO tokens in return.

Hardware

DIMO Device (AutoPi)

Token

$DIMO

Activity

Vehicle Data Sharing

How DIMO Tokens Are Taxed

1
When You Receive DIMO (Income Tax)

DIMO rewards are taxed as ordinary income at the fair market value when received. Report on Schedule 1 (hobby) or Schedule C (business).

2
When You Sell DIMO (Capital Gains Tax)

When you sell DIMO, you owe capital gains tax on the difference between sale price and your cost basis. Report on Form 8949 and Schedule D.

Deductible Expenses

If you treat DIMO data sharing as a business (Schedule C), you can deduct:

DIMO Device Cost: Section 179 deduction or 5-year depreciation ($100-$300)
Installation Costs: OBD-II adapter, cables, professional installation
Mobile Data Plan: Business portion of cellular data for device connectivity

Note: Unlike Hivemapper, you generally cannot deduct mileage or vehicle expenses for DIMO since you are not driving for a business purpose — you are simply sharing data from normal driving.

Frequently Asked Questions

How are DIMO tokens taxed?

DIMO tokens earned from sharing vehicle data are taxed as ordinary income at the fair market value when received. When you sell DIMO, you may owe capital gains tax on any price appreciation.

Can I deduct my DIMO device purchase?

Yes! The DIMO device (like AutoPi) is deductible as business equipment if you treat data sharing as a business. Use Section 179 or depreciate over 5 years.

Is DIMO income considered passive income?

No, the IRS generally considers cryptocurrency rewards as active income, not passive. Report on Schedule 1 (hobby) or Schedule C (business) depending on your activity level.

Do I need to report DIMO if I only earned a small amount?

Yes. All cryptocurrency income is taxable regardless of amount. There is no minimum threshold for reporting crypto income to the IRS.

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