The Ultimate Guide to Helium (HNT, MOBILE, IOT) Tax Reporting in 2025

Operating a Helium hotspot means you're earning cryptocurrency rewards that the IRS considers taxable income. This comprehensive guide covers everything you need to know about reporting Helium mining taxes in 2025.

Understanding Helium Mining Rewards

The Helium ecosystem includes three tokens:

HNT - Primary network token from Proof-of-Coverage
MOBILE - 5G hotspot rewards
IOT - LoRaWAN hotspot rewards

All rewards are taxable at the moment you receive them.

Two Types of Taxes

1. Ordinary Income Tax (When You Earn)

Every HNT, MOBILE, or IOT reward you receive is ordinary income taxed at your normal rate (10-37%).

Example: Receive 10 HNT worth $50 → Report $50 as income

2. Capital Gains Tax (When You Sell)

When you sell or exchange tokens, you pay capital gains tax on the profit.

Example:

Received: 10 HNT at $50 (already taxed as income)
Sold: 10 HNT at $80
Capital gain: $30 (taxed at 0-37% depending on holding period)

Cost Basis Calculation

Critical: Your cost basis = Fair Market Value when received

If you receive 1,000 small rewards over the year, you need to track each one's value at receipt time. This is where most miners struggle.

Required IRS Forms

Schedule C (Business Income)

If you operate hotspots as a business:

Report all mining income
Deduct business expenses (electricity, internet, hardware depreciation)
Pay self-employment tax (15.3%)

Schedule 1 (Hobby Income)

If you mine casually:

Report income on Line 8
Limited deductions

Form 8949 & Schedule D

Report capital gains when you sell HNT/MOBILE/IOT.

Tax-Saving Strategies

1. Track Every Reward

Use DePIN Tax to automatically import all Helium rewards with exact USD values at receipt time.

2. Deduct Business Expenses

Hotspot hardware ($400-600)
Electricity ($50-100/year per hotspot)
Internet (proportional)
Home office space
Vehicle expenses for site visits

3. Hold for Long-Term Gains

Hold tokens >1 year before selling for preferential capital gains rates (0%, 15%, or 20% vs 10-37%).

4. Tax-Loss Harvesting

Offset gains by selling losing positions before year-end.

Example: Full-Year Tax Calculation

Your Activity:

5 Helium hotspots
Earned: 1,000 HNT at average $5 = $5,000 income
Sold: 500 HNT for $3,000 (cost basis $2,500)
Capital gain: $500

Without Deductions:

Income tax (22% bracket): $1,100
Self-employment tax: $706
Capital gains tax (short-term): $110
Total: $1,916

With Deductions:

Hardware depreciation: $500
Electricity: $250
Internet (25%): $180
Total deductions: $930

Adjusted:

Taxable income: $4,070
Income tax: $895
SE tax: $575
Capital gains: $110
Total: $1,580
Savings: $336!

Quarterly Estimated Taxes

If you expect to owe >$1,000, make quarterly payments:

Q1 (Jan-Mar): April 15
Q2 (Apr-May): June 15
Q3 (Jun-Aug): September 15
Q4 (Sep-Dec): January 15 of next year

Common Mistakes to Avoid

❌ Not reporting small rewards - Every $1 counts! ❌ Using wrong cost basis - Must be FMV at receipt ❌ Forgetting deductions - Track all expenses ❌ Missing quarterly payments - Triggers penalties ❌ No records - Keep everything for 7 years

How DePIN Tax Helps

Automated Import

Connect your Helium wallet → Automatic import of all HNT, MOBILE, IOT rewards with exact timestamps and USD values.

Cost Basis Tracking

We track each reward's FMV at receipt time, so you always know your exact cost basis.

Tax Forms Generation

One-click generation of Schedule C, Form 8949, Schedule D, and all supporting documentation.

Expense Tracking

Upload receipts, categorize expenses, calculate depreciation - all in one place.

Quarterly Tax Calculator

Know exactly what you owe each quarter to avoid surprises.

Get Started

Stop struggling with spreadsheets and manual calculations. DePIN Tax is built specifically for Helium miners.

Pricing: $69 one-time (lifetime access)

Unlimited hotspots
Unlimited transactions
All features included
No recurring fees

Compare to generic crypto tax software ($100-300/year) - you'll save money and get better accuracy.

Frequently Asked Questions

Q: Do I report every single reward? A: Yes, technically every reward is income. DePIN Tax aggregates them intelligently for reporting.

Q: What if I mined before tracking prices? A: Use DePIN Tax's historical price lookup to retroactively calculate cost basis.

Q: Can I deduct my hotspot purchase? A: Yes! Either Section 179 immediate expense or 5-year depreciation.

Q: What about staking rewards? A: Staking rewards are also ordinary income at receipt.

Q: Do I need a CPA? A: DePIN Tax generates everything you need. A CPA can review if desired.

Summary

All rewards are income when received
Track cost basis at receipt time
Deduct business expenses to lower taxes
Hold >1 year for better capital gains rates
Make quarterly payments if you owe >$1,000
Use DePIN Tax to automate everything

Ready to simplify your Helium taxes? Start with DePIN Tax today - $69 lifetime access, no subscription. 🚀