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> would be the taxable event from the IRS's perspective. But you can explain that right? Cannot imagine you would be taxed on that: you would get taxed on 10%
by tluyben2 5y ago
> would be the taxable event from the IRS's perspective.
But you can explain that right? Cannot imagine you would be taxed on that: you would get taxed on 10% you keep though when you sell up. Or do you pay over that right away in the US?
- arcticbull 5y agoEach transaction is its own taxable event, with taxes due based on the difference between the cost basis and the disposition price.
- tluyben2 5y agoHmm interesting. But you cannot explain this as not a tax event to the irs if you send back 100%? Of course, the receivers might not live in the US. Sounds like lot of countries would be friendlier than what you say.
- arcticbull 5y agoRe: (1) I'm genuinely not sure how that would work. I suspect if you claimed you received it in error and sent it back, that would probably not incur an actual tax obligation. Not sure though, that's the kind of thing I'd want to run by a tax attorney if it was a non trivial quantity. Re: (2) definitely, which makes the threat a lot stranger.
- tehlike 5y agoThis is not that different from a bank error where they deposit few million dollars and take it back It is not income if it's error and you return it.
- arcticbull 5y agoSounds reasonable. Not sure how or if I'd report it in that situation, though.