Published: May 22, 2025
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๐Ÿšจ BIG TAX HACK COMING FOR BITCOINERS ๐Ÿšจ Trumpโ€™s proposed โ€œ๐—ง๐—›๐—˜ ๐—ข๐—ก๐—˜, ๐—•๐—œ๐—š, ๐—•๐—˜๐—”๐—จ๐—ง๐—œ๐—™๐—จ๐—Ÿ ๐—•๐—œ๐—Ÿ๐—Ÿโ€ brings back the much-anticipated 100% bonus depreciation... And that means one thing: You could mine Bitcoin AND wipe out your tax bill. ๐Ÿ‘‡๐Ÿงต

Image in tweet by Sovereign CPA โšก๏ธ๐Ÿ‡บ๐Ÿ‡ธ

First, what is depreciation? Normally, when a business makes a large purchase, like a truck or an ASIC miner, you canโ€™t deduct the full cost right away. The IRS makes you stretch it out over years, so youโ€™re stuck waiting to get the full tax benefit.

BUT ๐Ÿญ๐Ÿฌ๐Ÿฌ% ๐—ฏ๐—ผ๐—ป๐˜‚๐˜€ ๐—ฑ๐—ฒ๐—ฝ๐—ฟ๐—ฒ๐—ฐ๐—ถ๐—ฎ๐˜๐—ถ๐—ผ๐—ป flips that. You get to deduct the entire cost upfront. Spend $50K on ASICs? Boom. $50K deduction this year. ๐Ÿ’ฅ Thatโ€™s what Trumpโ€™s anticipated tax overhaul brings back, and itโ€™s a game changer. https://x.com/i/status/1856847...

Example: You buy 3 ASIC miners for $10K each - $30K total. With 100% bonus depreciation, you deduct the full $30k this year, even if your mining income is minimal at only $5k. That creates a $25k paper loss, which you can use to offset income from your W-2 job or another business. Depending on your tax bracket, that could ๐˜€๐—ฎ๐˜ƒ๐—ฒ ๐˜†๐—ผ๐˜‚ $๐Ÿณ๐—žโ€“$๐Ÿญ๐Ÿฌ๐—ธ ๐—ถ๐—ป ๐˜๐—ฎ๐˜…๐—ฒ๐˜€. And next year, your miners are operating profitably, stacking sats.

Hereโ€™s the strategy: โ†’ Buy mining rigs โ†’ Deduct the full cost โ†’ Create a paper loss โ†’ Use that loss to offset income from your job, business, or investments Less tax. More sats. Simple as that.

Real estate investors have used this trick for decades. Itโ€™s how Trump (and many others) legally paid $0 in taxes in past years. Now? Bitcoiners might get to use the same exact playbook, with hash power instead of houses.

Image in tweet by Sovereign CPA โšก๏ธ๐Ÿ‡บ๐Ÿ‡ธ

Youโ€™re already paying taxes. With this strategy, you can ๐—ฟ๐—ฒ๐—ฑ๐—ถ๐—ฟ๐—ฒ๐—ฐ๐˜ ๐—บ๐—ผ๐—ป๐—ฒ๐˜† ๐˜๐—ต๐—ฎ๐˜ ๐˜„๐—ผ๐˜‚๐—น๐—ฑโ€™๐˜ƒ๐—ฒ ๐—ด๐—ผ๐—ป๐—ฒ ๐˜๐—ผ ๐˜๐—ต๐—ฒ ๐—œ๐—ฅ๐—ฆ into buying an asset that ๐—ด๐—ฒ๐—ป๐—ฒ๐—ฟ๐—ฎ๐˜๐—ฒ๐˜€ ๐—ถ๐—ป๐—ฐ๐—ผ๐—บ๐—ฒ ๐—ฎ๐—ป๐—ฑ ๐—ฎ๐—ฐ๐—ฐ๐˜‚๐—บ๐˜‚๐—น๐—ฎ๐˜๐—ฒ๐˜€ ๐—•๐—ถ๐˜๐—ฐ๐—ผ๐—ถ๐—ป. Instead of losing that money foreverโ€ฆ You put it to work.

Hereโ€™s how to get started: 1. Set up an LLC ๐Ÿ” 2. Partner with a co-location facility to host your miners ๐Ÿ”Œ 3. Buy ASICs and start mining โ›๏ธ 4. Plan with a tax pro who understands Bitcoin and depreciation ๐Ÿ‘จ๐Ÿ’ผ 5. File 100% bonus depreciation and lower your tax bill ๐Ÿงพ

Buying Bitcoin has been the go-to way to stack sats. But if this bill passes, mining might become part of your toolbag, especially if it helps cut down your biggest expense: taxes.

Not only does this support the network and push decentralization forwardโ€ฆ It gives you more sovereignty in the process.

Image in tweet by Sovereign CPA โšก๏ธ๐Ÿ‡บ๐Ÿ‡ธ

Iโ€™m partnering with @megawatthq to help Bitcoiners execute this strategy. Theyโ€™re vertically integrated, offer in-person tours, and have raving client references. Iโ€™ve been friends with their team for years, and their CEO is who first got me into Bitcoin. If youโ€™re going to mine, Megawatt is who you want in your corner.

Image in tweet by Sovereign CPA โšก๏ธ๐Ÿ‡บ๐Ÿ‡ธ

Interested? We both have special offers: โžก๏ธ If you host with Megawatt and mention my name, youโ€™ll get 25% off your first month of hosting. โžก๏ธ Also, if youโ€™re diving into mining, Iโ€™m offering a special discount on tax strategy and return prep to help you do it right. DM me or reply โ€œMININGโ€ and Iโ€™ll point you in the right direction.

@megawatthq Find this helpful? Retweet the first post so more Bitcoiners can learn about this opportunity to mine and legally lower their tax bill. Earn sats. Pay less tax. Build freedom. ๐ŸŸงโšก๐Ÿ‡บ๐Ÿ‡ธ https://x.com/ArnielSia/status...

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