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March 16, 2022
Question

Where do I enter small business (LLC) capital gains taxes?

  • March 16, 2022
  • 2 replies
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My company (sole prop LLC) operates crypto mines. The mining is income but where do I enter the capital gains taxes on TurboTax?

2 replies

JohnB5677
March 16, 2022

Mining of Cryptocurrency counts as part of your regular taxable income. You owe tax on the entire fair market value of the crypto on
the day you received it, and it is taxed at your regular income tax rate.

 

Crypto mining can be taxed as either a  Business or a Hobby  You have TurboTax Self-Employed. So I consider this a business.

 

If you have a business, it will be entered directly into the business income section of the return.

You can also deduct expenses, and depreciate equipment.

 

 

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March 16, 2022

Thank you, I didn't know if it should be uploaded to Turbotax similar to personal crypto capital gains and was just not seeing it. 

March 10, 2023

The existing answers to this question are unclear and potentially misleading.

 

Capital gains for single-member LLCs operating as disregarded entities go on the owner's Schedule D. You do not want to enter LLC cap gains as regular business income.

 

From https://finance.zacks.com/capital-gains-offsets-llc-operating-losses-7938.html:

 

Unless a single-member LLC makes the election to be taxed as a corporation, the IRS will consider the LLC a “disregarded entity.” A disregarded entity is not recognized as being separate from the owner for taxation purposes. In this case, the LLC’s capital gains and losses are treated as though directly incurred by the individual. The capital gains and losses are reported on Schedule D along with any other capital gains and losses. Net LLC capital gains tax is determined at the individual taxpayer’s rate. Net losses are deductible up to the IRS limits.