Nicehash pays me(credits btc) every 4 HOURS for mining; into my nicehash account (So thats 6x per day OR 180x per month). However, I only withdraw from Nicehash 5x per month into my external wallet/account in big lump sums.
I live in the United States.
1. Does the IRS want the information of EACH of the 180x mini-btc-credits per month from my Nicehash account(The past live current market price/value of each of the 180-btc-credits per month)? OR do I just report the market-value of the 5x times I withdrew from Nicehash per month on my taxes?
2. What counts as a "transaction" on the IRS tax forms? Everytime Nicehash credits my account with BTC (180x/month) OR are "transactions" only the times you withdraw from nicehash into an external wallet(5x/month for me)?
3. For Nicehash, you mine ETH but get "paid" in bitcoin, so how would you categorize this alternative payment for mining ETH on your taxes?
4. Nicehash is not located within the United States, so does this mining-on-nicehash/getting-paid-on-nicehash count as "foreign income"?
5. Do I need some sort of official business license like an "LLC" to categorize my mining as a business instead of a hobby so I can deduct the mining equipment as expenses?
6. What IRS tax form is needed for only mining/withdrawing from Nicehash and no selling for cash? Only Schedule C?
