Tax Saving Strategy Explained

Tax Framework:

With the passing of The Big Beautiful Bill, 100% accelerated bonus depreciation is back for 2025. This change was implemented to allow business owners to write off PP&E that traditionally would have a 5 year MACRS recovery schedule in year 1.


Because Bitcoin mining ASICs qualify under the umbrella of tangible 5-year MACRS business property, they qualify for accelerated bonus depreciation under IRS code section 168. Specifically, the tax code refers to these as “any qualified technological equipment”. Qualified technological equipment further refers to any computing equipment, which ASICs are.

• IRC §168(k)(1): Provides a special allowance for “qualified property” in the taxable year it’s placed in service.

• IRC §168(k)(2)(A)(i): Defines “qualified property” as property with a recovery period of 20 years or less under the Modified Accelerated Cost Recovery System (MACRS).

• IRS Publication 946 (How to Depreciate Property): Specifically confirms that machinery and computing equipment used in a trade or business generally fall within 5 or 7 year MACRS recovery classes, making them eligible.

ASIC (mining rigs) depreciation can categorically be treated as passive or active income, relative to the management strategy you undertake. If you instead wanted to write this off against active income, there are two main criteria to qualify:

• 100 Hours: You must spend at least 100 hours annually on managing the business activity to depreciate it against active income that tax year. Assuming you have a log showing that you’re monitoring your fleet, paying hosting bills, strategizing and following the market, etc., 100 hours per year should be very attainable.

• More Activity Than Anyone Else: Blockware manages tens of thousands of ASICs across hundreds of hosting customers. It is effectively impossible that any one member of our team is spending more time actively managing your specific assets than you would in a given tax year.

In Summary: Since ASIC miners are tangible business assets with a MACRS recovery period of 5 years, they meet the criteria for “qualified property”. In short, this allows you to write your capex off as an immediate expenditure in 2026 against taxable income.