Mark Kohler explains why buying a dedicated mining rig or computer through a Roth IRA is risky. The IRS will disallow the expense unless you can prove the hardware is necessary and document it thoroughly. His own structure uses an IRA-LLC to own the mining equipment exclusively.
Once you say, well, I want my Roth to buy me a laptop, the artist is going to go, whoa, whoa, whoa. We're cool with you using your phone or your laptop to make some trades here and again, once in a while. But if you need a whole computer just to manage this crypto Roth. Now, maybe your crypto roth is worth $3 million. I don't know. Or say it in another way. Your Roth is worth so much freaking money that it requires so much dedicated laptop time that it needs its own laptop. Then you better be able to back that up, because I don't see it. I don't see that as necessary to just trade a crypto account. Now, I have an IR LLC that does own a computer, a whole CPU with video cards doing mining. So those laptops or computers or CPUs or video cards are specifically dedicated to mining inside that llc, and they're not used for anything else. Okay? The Roth IRA pays for that, and that's cool. But be careful buying a computer that do you really need it. You better be able to back that up. And then I'd be okay. It's going to be on. You just got to be careful.
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