Free Tool
DePIN Mining Tax Deduction Estimator
Calculate your potential tax savings with common DePIN mining business deductions.
Enter Your Mining Expenses
Input your DePIN mining expenses to estimate tax deductions and savings
Tax Settings
Section 179 allows full deduction in year 1
Equipment & Setup
Hotspots, antennas, cables, mounts, etc.
Professional setup, antenna installation
Monthly Operating Expenses
Annual Expenses
2024 IRS rate: $0.655/mile
CPA, tax prep, legal fees
Home Office Deduction
Based on square footage used for mining
Common DePIN Mining Tax Deductions
As a DePIN miner, you're running a business and can deduct ordinary and necessary expenses. Here are the most valuable deductions:
Equipment Depreciation
- MACRS 5-year: 20% first year, declining over 5 years
- Section 179: Deduct up to $1.16M immediately
- Bonus depreciation: 60% in 2024 (phasing out)
Operating Expenses
- Electricity: Power for 24/7 mining operations
- Internet: Required connectivity for mining
- Repairs: Replacement parts and maintenance
- Insurance: Equipment and liability coverage
Professional Services
- CPA fees for tax preparation
- Legal fees for business setup
- Tax software subscriptions
- Professional installation services
Home Office
- Portion of rent/mortgage (based on square footage)
- Utilities: Electricity, water, gas
- Home insurance (business portion)
- Simplified: $5/sq ft up to 300 sq ft
Maximize Your Tax Savings
- Keep detailed records: Save all receipts, invoices, and transaction records
- Track mileage: Use apps to log trips for equipment maintenance
- Separate accounts: Use dedicated bank account and credit card for mining
- Quarterly estimates: Pay estimated taxes to avoid penalties
- Consider QBI deduction: Up to 20% deduction on qualified business income