Headlines like the one below, void of context, were used by legacy media outlets to craft a narrative that Donald Trump was a criminal tax evader. Objectively, this is false. He didn’t break tax law, he used tax law to his advantage. Depreciation is one of the most powerful tools in the US Tax Code and wealthy Americans have been using it for decades.
This is not a political newsletter – it’s a financial newsletter. And regardless of one’s personal views of the President, studying his business career and success in commercial real estate provides a key source of alpha that we can use to optimize our own financial strategies.
The playbook used by Donald Trump and other commercial real estate moguls is actually quite simple:
The former generates cash flow while the latter minimizes the “paper gains”, thus lowering the tax obligation.
Now Bitcoin miners can execute the same playbook but better…
Under the 2017 Tax Cuts and Jobs Act, investors could write off 100% of the cost of business equipment (like real estate renovations or machinery) in Year 1. This is called bonus depreciation. It allowed investors to “lose” millions on paper, while collecting real income.
Bonus depreciation was slowly phasing out but it’s now BACK, courtesy of the ‘Big Beautiful Bill’.
Bitcoin mining hardware is included in Bonus Depreciation. Bitcoin miners can now write off 100% of mining hardware costs for the accompanying tax year. If you purchase $100,000 worth of mining hardware in 2025, you can write off $100,000 of income for 2025.
Instead of writing off a property over the course of 39 years like real estate investors…
Bitcoin miners can depreciate everything instantly.
– Same tax shelter
– Higher returns
🔹 Returns
A good Commercial Real Estate investment nets an 8 to 12% annual return. Bitcoin Mining consistently nets 30 to 50% annual returns (in some years, depending on the price of Bitcoin, the returns can be even higher).
🔹 Scalability
Mining scales easily. When using a Mining-as-a-Service provider like Blockware, you can buy a single machine or deploy millions with minimal friction. Real estate requires much more capital to get into the game; eliminating the ability for smaller capital allocators to participate. And there’s far more operational complexity (permits, building restrictions, etc.) for large-scale allocators.
🔹 Liquidity
Bitcoin miners can be bought or sold quickly, especially with Blockware’s ASIC Marketplace, which enables transactions 24/7, powered by the Bitcoin network. With Real Estate it can take many months to get liquidity.
🔹 Income
Bitcoin miners generate daily income in BTC. Real estate delivers rent monthly in depreciating fiat dollars.
🔹 Operating Costs
When mining with Blockware your only operating expense is electricity, and it’s highly predictable. Real estate comes with taxes, unforeseen repairs and maintenance, and management fees.
Depreciation is the ultimate tool used by the wealthy elites to minimize their tax obligations. It’s perfectly legal and can save you thousands of dollars every year. Trump used it for real estate. Now you can use it for digital scarcity.
Schedule a free consultation with Blockware to learn more: mining.blockwaresolutions.com/tax
Watch our latest YouTube video for an in-depth explanation into Bitcoin Mining as a tax-mitigation strategy: