10/15/19

Crypto — We’re From The IRS And We’re Here To Help

Just when you thought the government of the United States of America had forgotten about you, the Internal Revenue Service sends you a love letter telling you how the cow shall consume the cabbage as it relates to taxes on the use of cryptocurrency.

They had previously opined on the subject last back in 2014 with IRS Notice 2014-21. Five long years and, finally, our pals from the IRS are back with an additional dose of wisdom.

I know what you’re saying, “Wow, this is really going to be great. Oh boy!”

[Pro tip: Hold onto that enthusiasm and, maybe, redeploy it at some future date.]

The guidance (on the specific issue of forks and airdrops) has come in the form of Revenue Ruling 2019-24 which you can find right here.

IRS Revenue Ruling 2019-24 (rr-19-2)

The real assistance is in the form of a series of Frequently Asked Questions on Virtual Currency Transactions.  You can find that gem of wisdom right here.

Frequently Asked Questions

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07/28/19

Tech, Taxes, Tariffs, Trade — And French Wine

France has imposed/threatened a “digital services tax” on the likes of Amazon, Apple, Facebook, and Google — all American companies.

The tax is 3% of gross revenues from digital services earned in France, but only for companies with more than 25MM Euros in French revenue and 750MM Euros in worldwide gross revenue. The tax money goes to France.

When you work through the math it puts a bullseye on Amazon, Apple, Facebook, and Google while giving a pass to many European companies who collectively are just as big as these digital behemoths. This is not an accident.

This tax was discussed for some time period, but its enactment caught a lot of folks by surprise. One who was not caught by surprise was President Donald J Trump.

President Trump had spoken to the French President Emmanuel Macron cautioning him that such a tax would be met with an American response.

Image result for images macron

President Trump, in his inimitable fashion said, “Don’t do it because if you do it, I’m going to tax your wine.” Macron blew him off. French wine is a huge industry.

The French Finance Minister, Bruno Le Maire, sniffing at the ruffian DJ Trump, suggested that taxes and tariffs were completely unrelated. Good luck with that, Bruno.

Taxes and tariffs are core elements of trade while technology, digital services are a critical element of American commerce.

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05/5/17

Repeal & Replace — TAXES

Repeal & Replace taxes, Big Red Car?

Big Red Car here on a spectacular Texas morning in May, the kind of day which fuels your passions and diminishes your troubles. On Earth as it is in Texas! Alternatively: Make America Texas Again? [Doing some A/B testing is the Big Red Car?]

So, the Republicans and their Trumpeteer were in the Rose Garden at the White House for a self-congratulatory orgy post the Repeal & Replace of Obamacare.

Trump and Ryan

“Paulie Boy, you did it.” “Thank you, Mr. President. It’s a crappy plan, but it’s the best I could get these crazy Republicans to vote for. Nancy Pelosi said ‘HI.'”

Some, like me, will say it’s a tad premature what with those balky chaps over at the Senate. I have other complaints but they will wait. Today we talk Repeal & Replace TAXES.

Yes, dear reader, our “healthcare” monstrosity was really a tax bill in disguise and those clever Republicans smoked it out.

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02/9/15

Raising Taxes, A Presidential Thing

Big Red Car here in the ATX which is enjoying some convertible weather. I am headed out to the Hill Country this afternoon and why not?

Folks up north, please don’t hate me — the azaleas will be blooming in about five weeks here in Texas. Always coincides with Spring Break.

So The Boss has been digging into the issue of taxes. Taxes are an important consideration for those in the startup business as they hope to ultimately monetize their work and investment. In the course of doing this they will likely be subject to capital gains. Not a bad thing. Continue reading