Are you leaving $37,000 on the table this year?
Most high-income earners don’t realize that Bitcoin mining can be one of the most powerful tax strategies available — if you know how to leverage bonus depreciation correctly.
At Abundant Mines, we’ve seen savvy investors use it to slash their tax bill, generate Bitcoin-denominated cash flow, and reinvest more capital each year. Here’s how it works.
What Is Bonus Depreciation — and How It Works for Bitcoin Mining
Bonus depreciation is a tax incentive that allows businesses to deduct a large percentage — often up to 100% of the purchase price — of eligible assets in the year they’re placed into service.
For Bitcoin mining, this means qualified hardware like ASIC miners can be fully written off in year one, instead of being depreciated slowly over several years.
Why it matters:
- Improves cash flow by reducing taxable income immediately
- Allows investors to reinvest tax savings into additional miners or other assets
- Creates a faster return on investment than traditional depreciation
Example in plain terms:
You buy $100,000 in mining equipment and start running it this year. Under bonus depreciation, you can deduct the full $100,000 as a business expense — even though the machines are still operating and producing Bitcoin for years to come.
Real-World Example: How a Miner Saved $37K
Let’s break down the numbers for a high-income investor in the 37% tax bracket:
| Investment | Tax Bracket | Deduction | Tax Savings |
| $50,000 | 37% | $50,000 | $18,500 |
| $100,000 | 37% | $100,000 | $37,000 |
| $250,000 | 37% | $250,000 | $92,500 |
One of our clients in the 35% tax bracket deployed 20 units before December 31 and saved over $52,000 in taxes. That’s the equivalent of mining Bitcoin tax-free for nearly nine months.
Who Qualifies for Bonus Depreciation
Bonus depreciation can apply to:
- Individuals running a mining operation as a business (not a hobby)
- Businesses that own and operate mining infrastructure
- Investors who place equipment into service within the eligible tax year
⚠ Important: The IRS is strict about business classification, documentation, and timing. Always work with a qualified CPA to ensure compliance.
Why High-Net-Worth Individuals Use Mining for Tax Optimization
Smart investors turn to Bitcoin mining because it checks two boxes: asset growth and tax efficiency.
Key benefits include:
- Accelerated write-offs — claim 100% in year one instead of over 5+ years
- Improved cash flow — keep more capital working for you immediately
- Bitcoin exposure — earn BTC through productive infrastructure
- Tax deferral — reduce or defer tax obligations while stacking Bitcoin
Compared to traditional depreciation schedules, bonus depreciation front-loads the benefit, freeing capital for reinvestment.
How Abundant Mines Helps Clients Do It Right
At Abundant Mines, we specialize in making the process turnkey for high-income earners:
- Structuring purchases to align with tax planning
- Hosting miners in fully-owned U.S. facilities for clean documentation
- Coordinating with your CPA to ensure IRS compliance
Whether you’re deploying $50K or $500K, we’ll help you maximize bonus depreciation and secure a strong Bitcoin position.
Ready to Reduce Your Taxes While Stacking Bitcoin?
✅ Schedule a free tax strategy call with our team
✅ Reserve a ready-to-deploy miner before year-end deadlines
Disclaimer: The information provided in this blog is for informational and educational purposes only and should not be construed as financial advice. Please consult with a financial advisor or conduct your own research before making any financial decisions.
