Tax forms, Tax considerations for the US HYIPers and Investors (taxes merged)
(ok. correct me if I'm wrong. Please.) This is only for the US, other countries I don't know.
A. Amount received from an e-currency not backed by USD, sent to the bank or an e-currency backed by USD (e.g Paypal). = __________
B. Amount sent from bank or USD backed e-currency to non-USD backed e-currency. = __________
C. Gross Income = A - B = _________
D. Deductions if applicable (internet access, etc.) = ___________
E. Taxable Income = C - D = __________
F. If field E or field C is less than 0, you are not concerned with reporting your taxes for this year. If field E is greater than 400 USD, I recommend that you report your taxes for this year.
G. If Field E is big enough, I recommend that you split your income into say capital gains, self-properitorship (Schedule C), and hobbies. Make sure that Field D is not very large, as you could be nailed and audited for tax evasion.
H. Send your completed 1040 and all appropriate schedules to the IRS office.
Repeat, this is only a concern for US citizens with identification residing in the United States and meeting all of the requirements above.
Can anyone tell me if I need to report my Star-Game, WeeklyGold and ComShares earnings on Form 1040? Are HYIP earnings actually considiered Income?
If I have to report it, do I show it as Interest Income? Do I have to list each HYIP on the form? I don't want to call attention or raise a red flag if I don't have to.
Since I don't get 1099s from any HYIPs, is it better to report HYIP earnings in a different category, say gambling winnings or short- or long-term income?
What is the proper category in which to report HYIP earnings?
Or do we just not even mention anything about HYIPs and/or e-currency?
You need to pay taxes if your money is turned into USD (e.g. e-gold to bank account.) If you are investing on the behalf of an offshore company, and you have the offshore bank acct and egold account set up in its name, then you "as a person" do not need to pay taxes.
1. Don't ever list an hyip on a form. Report it as capital gains from selling gold, self-employment, gambling, interest, and/or "other income". Its up to you how to stack this (e.g 50% capital, 20% other, 30% self-employment is just one of the many possibilities)
Again never list an HYIP on a form unless you are SURE that it is SEC approved. (then it won't be called an hyip, but an investment.)
You need to pay taxes if your money is turned into USD (e.g. e-gold to bank account.) If you are investing on the behalf of an offshore company, and you have the offshore bank acct and egold account set up in its name, then you "as a person" do not need to pay taxes.
1. Don't ever list an hyip on a form. Report it as capital gains from selling gold, self-employment, gambling, interest, and/or "other income". Its up to you how to stack this (e.g 50% capital, 20% other, 30% self-employment is just one of the many possibilities)
Again never list an HYIP on a form unless you are SURE that it is SEC approved. (then it won't be called an hyip, but an investment.)
Thanks jimhsu!
Let me see if I understand all this correctly. (By the way, this only pertains to U.S. residents)...
If someone (a person, company, HYIP or venture capital loan program, etc.) gives me a payment in gold coins, gold bars, e-gold deposit or e-Bullion deposit, it's not considered taxable income in the eyes of the IRS? Because it's not U.S. dollars, right?
So, all our e-currency spends and receipts is essentially "bartering"?
That it's only taxable income when you out-exchange e-currency into U.S. dollars (cash, check, money order, debit card withdrawal, bank account deposit, etc.)?
If this is true, then it means we can let our e-currency and SG, WG, other HYIP accounts grow untaxed?
This makes some sense but I'm skeptical. Is there some way we can get confirmation of this from a tax expert on this board?
Thanks again jimhsu. You're keeping us well-informed.
If I read the above correctly- if I do NOT receive and ecurrency money (like out exchanging from eGold to US Dollars in my bak)-- I do NOT have to report anything to the IRS. Is that correct? Lst year Pegassus showed a bunch of interest- but I never converted any of it to US Dollars.... Soooo I guess I dont have to report any of this to the IRS? How about "losses" in certain eGoldgames and stuff like Players Edge??? I assume the losses can be deducted as well? Seems like an ok thing... but.... I still wonder.....
Guess everyone know the NOva Lights web sites are still down-= and... who knows how muh of that interst I'll ever be able to convert anyway? I know NL is solid.. but. it owuld e nice to be able to withdraw a teeny weeny bit/.Patrick Thank you- someone????
You need to pay taxes if your money is turned into USD (e.g. e-gold to bank account.) If you are investing on the behalf of an offshore company, and you have the offshore bank acct and egold account set up in its name, then you "as a person" do not need to pay taxes.
1. Don't ever list an hyip on a form. Report it as capital gains from selling gold, self-employment, gambling, interest, and/or "other income". Its up to you how to stack this (e.g 50% capital, 20% other, 30% self-employment is just one of the many possibilities)
Again never list an HYIP on a form unless you are SURE that it is SEC approved. (then it won't be called an hyip, but an investment.)
I don't know if Comshares, SG, WG, etc. are SEC approved or not. My guess is that they're not. Are you saying then that an HYIP should never be listed on a form because they are not legal in the U.S.?
None of those are SEC approved. Something over here that IS SEC approved is something like the CBM gas well project ($30,000 a unit) by mario.
Quote:
Why I was absent is because I was extremly busy. Also with a new investment project in the USA, SEC aproved which will generate for almost lifetime between 30 +50% a year.
Project is located in West Virginia. (120 CBM gas well project)
The investors that will participate in this venture (with guarantee) I have to meet them in person. And only bank wires will be accepted.
Never list a hyip on a tax form to the US. If the IRS really needs to know where you got the funds, I believe that saying this is from your business, and that you exchanged gold for USD for profit is the best way to explain. Please contact your local CPA to be sure.
My understanding is that although you do not have to report your e-gold account since it is an asset, if there is a scam that takes your e-gold, you can't report that as a loss unless the amount you exchange out is less than the amount you exchanged in. To be safe, don't deduct more than 2K for costs (scams, internet connection, etc)
Think about it this way: You have an ounce of gold sitting on your desk. Someone that you know offers to give you a variable percentage worth of that ounce of gold each week until you get 250% back. :wink: E-gold is the same thing, because everything is held in ounces of gold. Therefore, no money ever changes hands. All that changes hands is that asset, which is the gold. When you sell the gold, of course, you get currency (USD). To figure out your P/L, of course, just subtract the total amount of gold (e-gold) that you bought from the total amount of gold (e-gold) that you sold in the year 2003. That number is what you have a legal obligation to pay a tax on. Report it however you like, I would go either with "Other Income", "Sale of bullion, short-term capital gain", or under the name of a small business under 'Schedule C'. I'm sure you could also itemize stuff such as your PrivateHyips.com membership, etc. ... just don't be specific about it.
This is just my take on things, consult an attorney to be sure. This isn't certified financial advice. 8)
Think about it this way: You have an ounce of gold sitting on your desk. Someone that you know offers to give you a variable percentage worth of that ounce of gold each week until you get 250% back. :wink: E-gold is the same thing, because everything is held in ounces of gold. Therefore, no money ever changes hands. All that changes hands is that asset, which is the gold. When you sell the gold, of course, you get currency (USD). To figure out your P/L, of course, just subtract the total amount of gold (e-gold) that you bought from the total amount of gold (e-gold) that you sold in the year 2003. That number is what you have a legal obligation to pay a tax on. Report it however you like, I would go either with "Other Income", "Sale of bullion, short-term capital gain", or under the name of a small business under 'Schedule C'. I'm sure you could also itemize stuff such as your PrivateHyips.com membership, etc. ... just don't be specific about it.
This is just my take on things, consult an attorney to be sure. This isn't certified financial advice. 8)
Sorry, I guess I'm not clear on what you're saying.
Let's say in Jan. 2003, I spent $100 worth of e-gold to get into an HYIP. During all of 2003, I received $500 worth of e-gold payouts from this HYIP. Let's also say that I never bothered to do anything with that e-gold and I just kept it in my e-gold account.
Tax forms, Tax considerations for the US HYIPers and Investors (taxes merged)
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