Can I deduct mining expenses?

Quick Answer

You can deduct energy and equipment expenses if you can show they were incurred for the purpose of ming

Detailed Answer

You can deduct all energy expenses incurred to mine crypto. However, you must be able to prove that the energy was used for mining crypto and not for other purposes. You can also deduct equipment expenses however any portion of the use of the device for purposes other than the production of income is not deductible.

The amount you can deduct is dependent on how often the equipment is used for other purposes.

You can deduct 25% if you provide evidence of occasional use of your equipment to earn mining income.

You can deduct 50% if you provide evidence of regular use of your equipment to earn mining income.

You can deduct 100% if you can provide evidence that your equipment’s primary use is for earning mining income.

However, if the useful life of the equipment is more than 3 years then you must deduct expenses according to a series of depreciation expenses, of no more than 25% per year. Any device worth €1,000 or less can usually be expected to have a useful life of no more than three years, in which case the entire acquisition cost can be booked as an expense.

On MyTax you can enter your mining expenses under Deductions -> Expenses for the production of income -> Expenses for the production of other income than wage income.

If you are declaring your expenses with finish language settings you can then declare your mining expenses under Vähennykset -> Tulonhankkimiskulut -> Muiden kuin palkkatulojen tulonhankkimismenot